ABSTRACT ARBI, MUHAMMAD S., M.S. Product and Market Analysis for bedsheets in United States (Under the direction of Dr. Helmut H. Hergeth and Prof. Nancy Powell)
Bedding has become one of the largest textile markets in the U.S. In the year
2004, the bedding market totaled $8.3 billion, which was a 12% increase over 2003.
Currently, bedsheets and pillowcases account for 33% of this market, i.e. $2.73 billion as
compared to $2.28 billion five years ago in 1999 (SanFilippo, 2005). The market is
growing and the customers are becoming increasingly quality savvy. According to the
latest consumer reports from Cotton Incorporated, customers now prefer quality over
brand name and looks – as opposed to consumer behaviors twenty years ago.
Manufacturers are proactive and push new and improved, higher value products into the
market in order to compete with low cost products manufactured overseas. Thus, new
product development and improvement of existing products by adding more value is
crucial for the survival of U.S. bedsheet manufacturers.
This research provides an in-depth industry and market analysis for bedsheets in
the United States. To effectively understand how the bedding industry is affected by
different factors, one must first understand the environment in which the manufacturer,
retailer, and consumer interact. Current industry dynamics are identified to provide a
context to the changing industry and changing markets. The literature review consists of
an internal and external environmental analysis of different aspects of the bedding and
the sheeting industry. The research includes data collected through a qualitative approach
and analyzes six different aspects of the industry: supply chain/logistics, manufacturing,
retail, consumer behavior, marketing/merchandising and brands.
In conclusion, the research provides a S.W.O.T. (Strengths, Weaknesses,
Opportunities, and Threats) analysis (Bradford, Duncan, & Tarcy) for each of the above
mentioned aspects of the bedsheet industry and a general industry analysis using Porter’s
five forces (Porter, 1980). This analysis will help manufacturers as well as retailers to
focus on strengths, minimize weaknesses, deal with threats and take the greatest possible
advantage of the opportunities available.
PRODUCT AND MARKET ANALYSIS FOR BED-SHEETS IN UNITED STATES
By
Muhammad Shahzad Arbi
A thesis submitted to the Graduate Faculty of North Carolina State University
in partial fulfillment of the requirements for the Degree of Master of Science
TEXTILE MANAGEMENT & TECHNOLOGY
Raleigh
2005
APPROVED BY:
___________________________ Dr. Kristin Thoney, Member
___________________________ Prof. Nancy Powell, Co-chair of Advisory Committee
_______________________________________ Dr. Helmut H. Hergeth, Chair of Advisory Committee
ii
BIOGRAPHY
The author, Muhammad Shahzad Arbi was born in Karachi, Pakistan on November 17, 1981.
His parents are Majeed and Kulsum Arbi and he has two older sisters, Anila and Bilquees,
and an older brother, Faisal. Muhammad grew up in Karachi, Pakistan and moved to
Houston, Texas in the spring of 2000. He graduated with a Bachelor of Science Degree in
Computer Science, with a minor in Mathematics, from the College of Natural Sciences and
Mathematics of the University of Houston in May 2003. His family owns a textile
manufacturing business in Pakistan. These manufacturing facilities involve warping, sizing,
weaving, printing, dyeing and finishing, folding and cutting and sewing capabilities. The
author also owns a small software programming company to work on small projects. He
spent the summer of 2003 in Pakistan learning about the family business, which motivated
him to join one of the top-ranked textile schools of the U.S., North Carolina State University,
for his graduate studies. Muhammad is currently completing the requirements for his
graduate degree and looks forward to a career in textile sourcing.
iii
ACKNOWLEDGEMENTS
First of all I would like to thank Almighty Allah, the most beneficial and merciful, for
blessing me with an opportunity to attain higher education and making it easier for me to
achieve my goals in life.
I would like to thank the chair of the thesis committee, Dr. Helmut H. Hergeth who always
kept me motivated and on my toes to get this research finished in time and for his assistance
and support through this research and learning process. I am grateful and honored to have
committee co-chair, Prof. Nancy Powell, who inspired me to do this research through her
wisdom and New Product Development class. I am also very appreciative and thankful of the
invaluable support and guidance provided by Dr. Kristin Thoney.
In addition, I would like to extend my appreciation to Honora F. Nerz, for helping me find
literature online and in the library through her genius knowledge of resources.
Finally, I would like to thank my parents, Majeed and Kulsum Arbi, and my elder brother
and best friend Faisal Arbi, who continue to love, encourage and support me through every
adventure and challenge.
iv
TABLE OF CONTENTS
LIST OF FIGURES .......................................................................................................... vii
LIST OF TABLES............................................................................................................. ix
CHAPTER 1: INTRODUCTION....................................................................................... 1
1.1 RESEARCH METHODOLOGY.................................................................................. 2
1.2 PURPOSE OF THE STUDY........................................................................................ 3
1.3 RESEARCH OBJECTIVES ......................................................................................... 4
1.4 SIGNIFICANCE OF THE STUDY.............................................................................. 4
1.5 LIMITATIONS OF THE STUDY................................................................................ 5
1.5.1 Scope of the study...................................................................................................... 5
1.6 DEFINITIONS OF TERMS ......................................................................................... 6
CHAPTER 2: BACKGROUND......................................................................................... 8
2.1 Home Textiles Industry................................................................................................. 8
2.2 Bedding Industry........................................................................................................... 9
2.3 Sheeting Industry ........................................................................................................ 10
CHAPTER 3: INDUSTRY PROFILE.............................................................................. 12
3.1 Supply Chain / Logistics............................................................................................. 12
3.2 Manufacturing Environment....................................................................................... 16
3.2.1 Political/Legal .......................................................................................................... 17
3.2.2 Major Players ........................................................................................................... 18
3.2.3 Technology .............................................................................................................. 18
3.2.4 Innovations............................................................................................................... 20
3.3 Retail Environment: .................................................................................................... 23
v
3.3.1 Major Players ........................................................................................................... 23
3.3.2 Strong Mass Merchandisers..................................................................................... 25
3.3.3 Online Sales ............................................................................................................. 26
3.4 Consumer Environment .............................................................................................. 28
3.4.1 Market Projections:.................................................................................................. 29
3.4.2 Buyer Characteristics ............................................................................................... 30
3.4.3 Change in consumer preferences ............................................................................. 31
3.4.4 Buyer Decision Factor ............................................................................................. 32
3.4.5 Communicating to the Customer ............................................................................. 32
3.4.6 Thread Count ........................................................................................................... 34
3.4.6.1 Thread count inflation........................................................................................... 35
3.4.6.2 Thread count issue with ASTM Standard............................................................. 36
3.5 Marketing Strategy...................................................................................................... 38
3.5.1 Push.......................................................................................................................... 39
3.5.2 Pull ........................................................................................................................... 39
3.6 Brands: ........................................................................................................................ 40
3.6.1 Challenges in Sheeting Brands: ............................................................................... 41
CHAPTER 4: ANALYSIS ............................................................................................... 42
4.1 SWOT Analysis .......................................................................................................... 42
4.1.1 Consumer Behavior ................................................................................................. 43
4.1.2 Retail Relationship................................................................................................... 43
4.1.3 Manufacturing.......................................................................................................... 43
4.1.4 Marketing/Merchandising........................................................................................ 44
vi
4.1.5 Supply Chain/Logistics............................................................................................ 44
4.2 Value Chain Analysis: ................................................................................................ 45
4.3 Industry Analysis ........................................................................................................ 52
4.3.1 Threat of New Entrants............................................................................................ 53
4.3.2 Bargaining power of Buyers .................................................................................... 54
4.3.3 Bargaining power of Suppliers ................................................................................ 55
4.3.4 Rivalry among existing firms................................................................................... 56
4.3.5 Threat of Substitute Products................................................................................... 57
CHAPTER 5: DISSCUSSION & CONCLUSION........................................................... 58
RECOMMENDATIONS FOR FUTURE RESEARCH................................................... 60
References:........................................................................................................................ 61
Appendix 1........................................................................................................................ 64
Appendix 2:....................................................................................................................... 69
Appendix 3........................................................................................................................ 76
Appendix 4........................................................................................................................ 77
Appendix 5:....................................................................................................................... 81
Appendix 6:....................................................................................................................... 87
vii
LIST OF FIGURES
Figure 1: Proposed Analysis Model.................................................................................... 3
Figure 2: ASTM Standard Definition of sheet.................................................................. 10
Figure 3: General Sheeting Classification ........................................................................ 10
Figure 4: Sheets and pillowcases sales in $ millions (2000 – 2004) ................................ 11
Figure 5: DAMA Supply Chain........................................................................................ 13
Figure 6: Bedsheet Production and shipment in U.S. (1992-2004) .................................. 16
Figure 7: AK210/AK272 Machines.................................................................................. 19
Figure 8: AK232/AK244 Machines.................................................................................. 19
Figure 9: Bedding Sales by Major Retail Channels in the past 5 years............................ 25
Figure 10: Home Fashion Sales At Mass Merchandisers (2002) ..................................... 26
Figure 11: Largest Bedding Markets, 2007 ...................................................................... 30
Figure 12: Home Product Ideas ........................................................................................ 33
Figure 13: Sheet sales by Thread Count ........................................................................... 34
Figure 14: Standard ASTM definition of count................................................................ 36
Figure 15: Marketing Strategy .......................................................................................... 38
Figure 16: SWOT Matrix Structure .................................................................................. 42
Figure 17: Porter’s Generic Value Chain.......................................................................... 45
Figure 18: Value Chain for sheeting products at Springs Industries ................................ 46
Figure 19: Wagon Wheel infrastructure for Springs Industries........................................ 50
Figure 20: Forces Driving Industry Competition.............................................................. 52
Figure 21: Number of Establishments .............................................................................. 77
Figure 22: Number of Employees..................................................................................... 78
viii
Figure 23: Cost of Materials ............................................................................................. 79
Figure 24: Total Value of Shipment ................................................................................. 80
ix
LIST OF TABLES
Table 1: Scope of the Study ................................................................................................ 6
Table 2: Home Textiles Product Categories ....................................................................... 8
Table 3: Typical sales process of Springs to Wal-Mart.................................................... 15
Table 4: Top 5 U.S. sheets and pillowcases suppliers ...................................................... 18
Table 5: Springs’ Sleepology Collection .......................................................................... 21
Table 6: Top 5 Home Textiles Retailers for different distribution channels .................... 23
Table 7: Consumer buying preference at different distribution channels......................... 24
Table 8: Demographics Based Consumer Segmentation.................................................. 28
Table 9: Factors important to home fabrics purchases ..................................................... 32
Table 10: Thread count Standard status............................................................................ 37
Table 11: Changes in top bedding brand recognition ....................................................... 40
Table 12: Analysis of Consumers ..................................................................................... 43
Table 13: Analysis of Retailers......................................................................................... 43
Table 14: Analysis of Manufacturers................................................................................ 43
Table 15: Analysis of the industry’s Marketing/Merchandizing efforts........................... 44
Table 16: Analysis of the Industry Supply Chain............................................................. 44
Table 17: Primary Activities............................................................................................. 49
Table 18: Support Activities ............................................................................................. 51
Table 19: Rivalry among existing firms ........................................................................... 56
Table 20: Bedsheet size chart ........................................................................................... 76
Table 21: Bed, Bath and Beyond, Inc. in-store sheeting brands....................................... 87
Table 22: Linens ‘n Things in-store sheeting brands........................................................ 88
CHAPTER 1: INTRODUCTION
Textile manufacturing has undergone numerous changes in the U.S. during the past
decade. This change is due in part to the automation of the manufacturing process and
partly to the increasing labor costs in this country. Outsourcing is a preferred choice for
vendors in order to keep the costs low and revenues high (Shelton & Wachter, 2005).
U.S. manufacturers are proactive and are pushing for new, improved and higher value
added products into the market, in order to compete with low cost products manufactured
overseas. This strategy is considered a major change for especially bedsheets that used to
be a commodity product. New product development and improvements of existing
products are becoming crucial for the survival of bedsheet manufacturers in U.S.
Bedding is one of the biggest textile markets in the U.S. In 2004, the bedding market
totaled $8.3 billion, which was a 12% increase over 2003. Currently, bedsheets and
pillowcases account for 33% of this market, i.e. $2.73 billion as compared to $2.28
billion five years ago in 1999 (SanFilippo, 2005). The data shows that the market is
growing. Customers are becoming more and more quality savvy. According to the latest
consumer reports, customers now prefer quality over brand name and appearance –
which conflicts with the consumer behaviors twenty years ago (Anonymous, 2003).
To effectively understand how the bedding industry is affected by different
factors, one must understand the environment in which the manufacturer, retailer, and the
consumer interact. This research provides an in-depth market analysis for bedsheets in
the United States. It identifies the current industry dynamics to provide a context to the
changing industries and markets.
1
Cotton Incorporated was founded in the early 1970’s to increase the demand and
profit of cotton through research and promotion (Earley, 2005). According to Cotton
Incorporated’s Lifestyle Monitor Consumer Buying Behavior Survey – price, color, fiber,
thread count, softness and durability to laundering throughout the life of products are the
key factors in the purchases of home textile products. These findings should enable
manufacturers and retailers to improve their marketing efforts (product, price, placement
and promotion) to accommodate consumer preferences for acquiring home fabrics. The
objective of this research is to identify the strengths, weaknesses, opportunities and
threats of different aspects of the industry. Using this information the home textile
producers and retailers can provide, promote and sell products that satisfy the consumer.
1.1 RESEARCH METHODOLOGY
The data was collected through a qualitative approach. A case study methodology, using
Yin’s convergence of evidence approach was selected as the framework (Yin, 2003). This
approach identifies six of many potential sources of information from which to draw
information for a case study: archival records, documents, observations (direct and
participant), structured interviews and surveys, focus groups and open-ended interviews.
As illustrated in Figure 1, four sources of evidence are used: archival records,
observations, documents and structured interviews and surveys for this research to make
an analysis of the sheeting industry.
2
Fact Analysis Conclusions Direct Observations
Documents
Archival Records
Structured Interviews
Figure 1: Proposed Analysis Model Adapted from: (Yin, 2003)
Archival records consist of industry publications, scholarly journals, governmental data
and reports, etc. Appendix 2 identifies and lists the interview questionnaires for the
industry representative interviewed for this research. (Note: I acquired permission to
quote their answers in this publicly available document)
1.2 PURPOSE OF THE STUDY
To answer the following questions:
1. What are the factors that are driving different aspects of the sheeting industry?
2. Whether or not these aspects need improving or not? If they do then what can be
done to improve these aspects of the industry?
The purpose of this study is to delineate the U.S. home textile industry, specifically the
sheeting industry, and to analyze different aspects of the sheeting industry, for instance:
Supply chain/logistics of bedding products
Manufacturing
Retail
Consumer behavior
Marketing and Merchandising of bedding products
3
Brands
This analysis will help identify the strengths, weaknesses, opportunities and threats of
domestic sheeting products.
1.3 RESEARCH OBJECTIVES - To define the market environment of the U.S. home textiles and in particular the
bedding industry by using a qualitative approach through primary and secondary
research sources.
- To collect information on the major U.S. retailers and manufacturers to identify
current industry dynamics, their value chains and marketing strategies for the sheeting
products
- To analyze the collected data and identify the strengths, weaknesses, opportunities
and threats for different aspects of the sheeting industry
- To analyze the bedsheet industry as a whole using Porter’s Five Forces and make
recommendations to improve the industry dynamics in order to focus on strengths,
minimize weaknesses, deal with threats and take the greatest possible advantage of
the opportunities available.
1.4 SIGNIFICANCE OF THE STUDY
The research offers a profile of the fast-changing U.S. home textile industry and
also provides an insight into different aspects of the bedsheet industry. With rapidly
changing policies and globalization of the industry, a concise description of the industry
can be a helpful tool for the manufacturers as well as the retailers in order to make
marketing decisions. This research helps identify any improvements required in different
4
aspects of the U.S. sheeting industry and makes recommendations on how to make this
transformation of the industry more efficient.
The sheeting market is constantly changing with the changing environment. The
methodology of this study may serve as a template for future research in the area of
similar or other home textile products.
1.5 LIMITATIONS OF THE STUDY
• Confidential information is usually housed inside retail companies and their policies
prevent any sharing of trade secrets or proprietary information with any academic or
public institutions.
• This research focuses on bedsheets, which comprises a specific subset of the overall
home textiles and bedding market.
• The research utilized a case study approach, therefore, only a few representative
companies were studied and generalizations about the larger population may be
difficult to make. These companies were selected on the basis of their market share. It
is considered that the companies with the biggest market share influence the majority
of the market.
1.5.1 Scope of the study Bedsheets and pillowcases are part of the sub-category of the bedding market.
Within the sheeting category there exists a wide variety of products. In order to simplify
the research goal the following scope was chosen:
5
Table 1: Scope of the Study
Bed Linens Types Pillowcases, flat and fitted sheets (solids,
printed and flannel) Appendix 1 Fiber 100% Cotton Structure Woven Sizes Twin
Full or Double Queen King Pillowcases (see Appendix 3 for size standards)
Standards Only U.S. standards (not global) Count Under 180 thread count
180 thread count 200-250 thread count 250 thread count and above
Retailers Specialty Retailers – Bed, Bath and Beyond Discount Stores – Wal-Mart Department Stores – JCPenney
Manufacturers (Domestic) Springs Industries Dan River Westpoint Stevens
Distribution Channels Specialty store, Department stores, Mass merchant, Others (e-tailing, catalog, etc.)
Sourcing U.S. manufacturers 1.6 DEFINITIONS OF TERMS
Since this research is based on cotton sheets, the words ‘bed sheets’ and ‘bed
linens’ are used in the same sense. According to the literature, bed sheets refer to the top
and bottom sheets and/or pillowcases, whereas bed linens refer to all "coverings" used on
beds for example, bedsheets, blanket, comforter, etc. Bed spread usually refers to the top
layer of bedding – such as a comforter, whereas, a blanket is its own category, called
"blanket".
Some of the important terms related to this research are listed in Appendix 1.
6
Chapter 2 provides background on the Home Textile Industry. In chapter 3, a profile of
the industry is presented. Chapter 4 analyzes different aspects of the bedsheet industry by
using tools like Porter’s Five Forces (Porter, 1980) and Value Chain (Porter, 1985). The
conclusion and future research are explained in chapter 5.
7
CHAPTER 2: BACKGROUND
2.1 Home Textiles Industry
The Home Textile Industry consists of a wide range of products, but the four major
product categories in the U.S. for home textiles are Bed, Bath, Kitchen and Others. The
following table gives examples for each of the categories. ("A year of change for Top 5
players," 2004)
Table 2: Home Textiles Product Categories
Bed Bath Kitchen Others
Blankets
Comforters
Curtains/Draperies
Decorative Pillows
Down Comforters
Foam Pillows /
Toppers
Mattress Pads
Quilts
Throws
Sheets
Bath accessories
Bath Rugs
Bath towels
Shower Curtains
Kitchen Textiles
Table Linens
Rugs
Window Coverings
8
2.2 Bedding Industry
Bedding has become one of the largest textile markets in the U.S. In the year 2004, the
bedding market totaled $8.3 billion, which was a 12% increase over 2003 (SanFilippo,
2005). The bedding market consists of several different products: blankets, comforters,
and curtains/draperies, decorative pillows, down comforters, foam pillows / toppers,
mattress pads, quilts, throws and sheets.
9
2.3 Sheeting Industry
A bedsheet can be defined as a rectangular fabric of various grades and weights with
good tensile strengths (Higgins, 1948). The ASTM definition for ‘sheet’ is: (ASTM,
2005)
Figure 2: ASTM Standard Definition of sheet
Traditionally sheets have been woven in a similar construction as of percale and heavy
muslin (Higgins, 1948). Nowadays, bedsheets are available in vast variety on the basis of
fiber types, yarn construction, thread count, weave or knit structure and different sizes.
See Appendix 3 for different bedsheet size charts.
Bedsheets can be classified into several different categories based on their structure,
design/color and weave. My research includes the following general sheeting
classification:
Bedsheets
Woven
Satin Twill Plain
Structure
Color
Weave
Yarn-dyed Printed Dyed
Figure 3: General Sheeting Classification
10
Currently, bedsheets and pillowcases account for 33% of the bedding market, i.e. $2.73
billion as compared to $2.28 billion five years ago in 1999 (SanFilippo, 2005). This is an
increase of over half a billion dollars in sales in the past five years. There is significant
growth in the market. Figure 4 demonstrates the U.S. sales of bedsheets and pillowcases
from 2000 to 2004.
Figure 4: Sheets and pillowcases sales in $ millions (2000 – 2004)
Source: Home Textiles Today
Thus sheeting is definitely one of the most important markets in the bedding industry.
Some industry representatives believe that with the quota relief of 2005, these numbers
will further increase over the next few years (Earley, 2005) due to increased outsourcing
of low-cost products from overseas.
11
CHAPTER 3: INDUSTRY PROFILE
In this chapter, information is provided about the following six key aspects of the
industry:
Supply chain/logistics of bedding products
Manufacturing
Retail
Consumer behavior
Marketing and Merchandising of bedding products
Brands
3.1 Supply Chain / Logistics
The DAMA (Demand Activated Manufacturing Architecture) project started in 1993 by
National Labs and was commercialized my [TC]2 in an effort to promote collaborative
business practices to provide a significant reduction in time and cost to product pipelines.
A total of 30 companies from all major sectors of the textile supply chain participated in
this project. The goal was to develop, validate and analyze the industry supply chain and
integrate the results into computer simulation in order to determine business decisions for
collaborative supply chains (Lovejoy, 1996).
12
Figure 5: DAMA Supply Chain
The above figure shows the process steps for bedsheets. It is basically divided into four
major groups: Fiber, Textile, Manufacturing and Retail. During the investigative stage of
this research, the following key observations were made (Lovejoy, 1996) pg.5-10:
Fiber
Supply Constraints – Unlike synthetic fibers, cotton lead times are fixed, based on
the planting season
Competition for Raw Material Resources – Buyers have two fiber suppliers which
allows the manufacturers to take advantage of the competitive prices
Increased inventory time increases costs and might also affect the quality of the
cotton fiber
13
Textile
Demand of higher thread count sheets are increasing
Ensemble products: Since pillowcases, flat and fitted sheets are complimentary
products, sometime retailers drive the cost of one of these products low in order to
attract the customers, given the fact that the customer will require the other
products to create a whole set. A sheet set that includes a flat sheet, a fitted sheet
and two pillowcases is becoming popular among the customers.
Manufacturing (Cut and Sew)
Low Cost, but still complex to produce – bedsheet retail prices are lower than
what they were 40 years ago. Since cotton is a natural fiber and it is more
complex to process cotton as compared to synthetic fiber.
Very few companies are vertically integrated
Less labor intensive as compared to apparel products, especially with more
automation
Retail
Retailers use more than one manufacturer/supplier to produce the same bedsheets
for different regions
Not enough trust in the pipeline to facilitate concepts like shared risks (e.g., no
payment for goods until consumer purchased end item). Shared risks only works
when new products are developed with short production time and higher profit
margins.
Springs Industries is one of the few sheeting manufacturers in the U.S. with vertically
integrated manufacturing facilities. Springs blends and spins the yarn, weaves and
14
finishes the fabric and cut and sews the sheeting. Springs also has a number of their own
retail outlets and print a large share of their own packaging ("Springs Industries," 2005).
Due to the increase in out-sourcing there have been several effects on the supply chain.
Springs’ strategy is to maintain “Mirror Manufacturing” in their company. “Mirror
Manufacturing” is the ability of the company to manufacture the outsourced products in-
house, in order to fulfill the randomly changing demand from the buyer/retailer. This
allows the company to fulfill the orders in a timely manner. Springs is ranked as a
number one supplier for Wal-Mart. Following is a typical sales process (Lovejoy, 1996)
for Wal-Mart from Springs state-of-the-art distribution center.
Table 3: Typical sales process of Springs to Wal-Mart
Sunday Wal-Mart orders Monday Inventory is allocated Tuesday Order is visible to the warehouse at Springs Wednesday Warehouse receives a pick list and sends an advanced ship
notice Within the next two days Either Wal-Mart or another carrier picks up the completed
order This sales process also includes the manufacturing of the product if not available in the
inventory. It is important to identify any gaps in logistics and take appropriate measures
to improve efficiency in the pipeline. Based on the above supply chain analysis and
Springs’ logistics structure, we can generalize the bedsheet supply chain and make
recommendations accordingly for further improvements.
15
3.2 Manufacturing Environment
U.S. bedsheet manufacturing has been declining over the years. In 2004, U.S. bedsheet
manufacturers produced approximately 11 million dozens of bedsheet products. Figure 6
shows the production in the U.S. and shipments to the U.S. of bedsheets from 1992 to
2004. There has been a gradual decrease in the production of bedsheet in the U.S,
whereas in 2004, total shipments to the U.S. exceeded the total production. This is due to
increased outsourcing and also the licensing of the manufacturer’s brands overseas.
Bedsheets
0.0
5.0
10.0
15.0
20.0
25.0
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
Year
Mill
ion
Doze
ns
ProductionShipment
Figure 6: Bedsheet Production and shipment in U.S. (1992-2004)
Source: (Bed and Bath Furnishings: Fourth Quarter 2004, 2005) and ("Sheets, Pillowcases and Towels," 2004)
Appendix 4 contains four major graphs related to the manufacturing in the home textiles
industry. These graphs show 1) the total number of U.S. manufacturing establishments
from 1997 to 2002, 2) the total number of U.S. mills’ employees from 1997 to 2002, 3)
the total cost of raw materials for these U.S. manufacturing establishments from 1997 to
2002and 4) the total value of products shipped from these U.S. establishments from 1997
16
to 2002. All these graphs also contain the relative value for the sheeting products.
According to these graphs:
The number of textile establishments in the U.S. are decreasing,
The number of employees in these establishments are also decreasing,
The total cost of raw materials for these establishments have only slightly decreased
and have fluctuated up and down between 1997 and 2002, and
The total value of final shipments from these establishments is almost the same
during these years.
According to Home Textiles Today, 2005 Business Annual, bedsheet suppliers in the
U.S. are facing sharp increases in cotton prices and a shortfall in sheet quota. Also, due to
high competition, several manufacturing plants have shut down in the past, including
Pillowtex. Thus, U.S. manufacturers are in trouble and there is an urgent need for the
manufacturers to take desperate measures in order to survive the declining U.S. textile
manufacturing.
3.2.1 Political/Legal
Since January 1st, 1995, international textiles and clothing trade has seen fundamental
change under the ten-year transitional program of the World Trade Organizations’
(WTO) Agreement on Textiles and Clothing (ATC). ATC entered into force on January
1st, 1995, as a ten-year transitional agreement with a program to gradually integrate
textile and clothing products fully into General Agreement on Tariffs and Trade
(GATT) rules and disciplines by 2005. ATC influenced the production, manufacturing,
and sourcing of textile and apparel products. It re-directed the course of U.S. textiles and
apparel trade markets to low cost offshore locations at the expense of U.S. jobs (Shelton
17
& Wachter, 2005). Imports have increased, and the U.S. suppliers, manufacturers and
retailers have an opportunity to take advantage of these changes by creating better – not
necessarily cheaper – products (Seminar, 2005).
3.2.2 Major Players The top 5 U.S. sheets and pillowcases suppliers are: (Appendix 5 for company details)
Table 4: Top 5 U.S. sheets and pillowcases suppliers
2004 sales ($ millions) 2003 sales ($ millions) Percent change (%)
Springs Industries $685 $740 -7%
WestPoint Stevens $520 $500 4%
Dan River $136 $179 -24%
Divatex Home Fashions $120 $85 41%
Franco Manufacturing $103 $95 8%
3.2.3 Technology
“New technologies have emerged that have given companies the tools to meet the new
demands of competition and cost-cutting. As innovation has brought ever-cheaper
computing power and new ways to make use of it, capital has become increasingly
inexpensive relative to labor. The returns on investment in new labor-saving, high-tech
equipment has soared. Given that labor accounts for about two-thirds of the cost of
making and selling products, greater labor productivity in today's global economy is
essential to corporate survival” (Cooper, 2004) pg.38
There have been several technological innovations in bedding manufacturing in the U.S.
In 2003, California-based Venus Home Textiles invested $1.5 million to buy new
18
equipment in order to automate their processes. It was the first of its kind in the United
States (Schwartz, 2003). The machine is called AKAB-Jenson fitted and flat sheet
machine. It is completely computerized and only requires an operator to input the
parameters of the required sheet. Production of these machines ranges somewhere
between 250 and 550 pieces per hour, depending on material, model, size and type (flat
or fitted) of the sheets.
Figure 7: AK210/AK272 Machines (AKAB, 2005a)
Figure 8: AK232/AK244 Machines (AKAB, 2005b
These machines dramatically r the company. According to
)
increased the productivity fo
the officials at Venus Home Textile, the machine was producing up to 150,000 sheet sets
per month and was able to make 400 sheets in one hour – 20 times more than in the
production as compared to manual production (Corral, 2003).
19
Spring Industries also uses highly automated machinery in their manufacturing facilities.
From fiber to packed product, ‘Springs’ own a state-of-the-art continuous manufacturing
structure. Newly acquired automated flat and fitted sheet machines have increased
production speed by almost 20 times in the past couple of years. Springs also own a state-
of-the-art distribution center. This center is composed of a web of conveyer belts across
the building, controlled by IC sensors directing each package to its appropriate
destination (Hovis, 2005).
3.2.4 Innovations Recently, there have been several developments in the sheeting industry. Manufacturers
have introduced new and improved yarn constructions, finishing techniques and technical
expertise (Anonymous, 2004b). The manufacturing is based on the shape and design of
bed, relevant to the ergonomics or human dimensions. Compared to apparel products,
there are only a limited number of variables available for innovations. With the
increasing demand of high thread count by the consumers without regard to the other
quality measures of the sheeting, it is important to add new, improved and more
innovative products into the market (Schwartz, 2003). The following are a few examples
of innovative products introduced into the market by manufacturers:
Manufacturers use different fiber blends to achieve specific performance
characteristic. For instance, Pillowtex/Fieldcrest-Cannon™ introduced their
Fieldcrest 310 micro-denier sheets by blending cotton with micro-denier polyester
(60/40 cotton-polyester ratio). This introduction offered soft cotton-like sheets with
“longer wear and better ‘out of the dryer’ appearance” (Schwartz, 2003).
20
WestPoint Stevens introduced their Precious Sleep X-Static® fiber sheets made with
noble fibers and have antimicrobial and temperature-modifying capabilities and
Martex Convertibles® reversible bedding (Schwartz, 2003).
WestPoint Stevens also introduced their all-cotton Natural Stretch® sheets with
Cotton Incorporated. Due to the poor marketing strategy, this product did not succeed
in the market place (Earley, 2005).
Springs Industries’ Sleepology Collection: (Anonymous, 2004b)
Table 5: Springs’ Sleepology Collection
Wamsutta Embrace: 100% cotton flat sheets and pillows cases Fitted sheets with stretch to assure the sheets stay
in place Wamsutta Comfort Zone: 80/20 cotton-rich blend
Wicks away moisture to create a more comfortable night sleep
Wamsutta CareFree: twill weave 360-count WrinkleGuard® finish
Wamsutta Rest Easy: 85% cotton and 15% anti-bacterial and anti-fungal synthetic fibers
allergen-reduction properties prohibit the growth of dust mites
Product development teams at DuPont and Pillowtex/Fieldcrest-Cannon worked
together to develop the new Fieldcrest Snug & Savvy® sheets. DuPont spent over
$240 million in the past 3 years to market their new product Lycra®. These sheets
featured a blend of 95% cotton and 5% Lycra. Lycra® is completely submerged
within the cotton fibers and allows 30% stretch to the fabric. This results in better fit
while staying “neat” and unwrinkled (Schwartz, 2003).
Based on these few examples, we have categorized these innovations into four
characteristics in order to figure out the trend and the direction that the manufacturers are
taking in order to innovate new products. These categories are listed below:
21
Mix and match – combination and blends of different kinds and varieties of fibers
with added value
New and improved yarn constructions
Creative weaving designs and structures
State-of-the-art new finishes and processes
22
3.3 Retail Environment:
Consumers are now spending less and less time in the store. Instead of buying ensemble
products and trying to match the flat sheet to the fitted, consumers now prefer buying a
complete set of sheets (Earley, 2005). According to the retail audit in Appendix 6,
specialty stores recognize this shift and are now carrying whole sets of sheets instead of
individual products.
3.3.1 Major Players
As mentioned before, Home Textiles is an $8.3 billion market. The following table
demonstrates the Top-5 retailers in four different distribution channels in 2003 (Sloan,
2005).
Table 6: Top 5 Home Textiles Retailers for different distribution channels
Top 5 Home Textiles
Specialty Retailers Mass Merchandisers Department Stores Catalogs
Bed Bath & Beyond
Linens ‘n Things
Luxury Linens
Pier 1 Imports
Pottery Barn
Wal-Mart
Target Stores
Kmart
T.J. Maxx/Marshalls
Big Lots
JCPenney
Kohl’s
Mervyn’s
Macy’s East
Macy’s West
JCPenney
The Company Store
Pottery Barn
Brylane Home
Direct Marketing
Table 7 shows the comparison of customer buying preferences of home textile products
(towels, sheets, comforter, etc.) at different distribution channels (Source: Cotton
Incorporated’s Lifestyle Monitor):
23
Table 7: Consumer buying preference at different distribution channels
Distribution Channels 1998 2003 Mass Merchandisers 39% 48% Chain Stores 34% 29% Department Store 27% 20% Specialty Store 13% 24%
Customers are now buying more products from mass merchandisers (Wal-Mart, Target,
etc.) and fewer products from the chain stores and departmental stores (JCPenney, Belk,
etc.) as compared to over five years ago. Higher value products with low costs are
attracting more and more customers. According the table 7, the highest increase is 11%
for specialty store (Bed, Bath and Beyond, Linens N Things, etc.).
24
3.3.2 Strong Mass Merchandisers
Figure 9 shows that sales for the past five year have dramatically increased for mass
merchandisers and have decreased for the departmental stores. This shows that
consumers now prefer low-cost products.
Bedding Sales by Major Retail Channels ($ Millions)
$3,340
$1,586
$1,336
$751
$2,448
$1,496
$1,088
$816
$2,376
$1,386
$990
$792
$2,600
$1,300
$1,365
$650
$2,479
$1,273
$1,474
$0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000
Mass Merchandisers
Mid-Price Chains
Home textilesSpecialty stores
Department stores
20002001200220032004
Figure 9: Bedding Sales by Major Retail Channels in the past 5 years
(Source: Home Textiles Today)
25
In 2002, 43% of the home textile sales were through mass merchandisers or discount
stores. Approximately 22% of these sales were in bedding, thus making it the biggest
market compared to other home textile products. Figure 10 shows the percent share for
each of the products at mass merchandisers.
Share
Bedding, 21.71%
Bed Covers, 12.10%
Sewing goods, fabrics, 12.07%Bath goods,
11.92%
Shades, blinds, 9.36%
Yarns, 8.23%
Draperies, 5.08%
Curtains, 4.89%
Rugs, 3.86%
Kitchen textiles, 3.23%
Table linens, 2.42%
Other, 5.14%
Figure 10: Home Fashion Sales At Mass Merchandisers (2002)
Source: (Market Share Reporter, 2004a)
3.3.3 Online Sales
Total Online retail sales topped the $100 billion mark in 2003 and are increasing at a fast
rate (Lugo, 2004). 3% of these sales were in home textiles. Online sales are ideal for the
retailers to increase their market reach around the globe without major financial
requirements. Bedding is one of the products in which it is important for the majority of
the customers to actually touch and feel the product before buying (Landers, 2005).
Nevertheless, there has still been a significant increase in online shopping of bedding
products. Online stores and physical stores actually work hand-in-hand with the overall
26
sales of the bedsheet products. According to the literature readings, there are two
different ways this works out:
i. Front-back use:
Customers are using the online store not only for buying products but also as a guide to
what is out there. For example, if a customer were looking for a particular brand or type
of sheets, he or she would go to different stores to find it. Now they can search the web
for a particular bedding product and see if it is available in any of the stores. Once they
make their decision on what to buy, they can go directly to the store and feel the product
before buying it. Thus, in this case, the online store also serves as a product guide. This
behavior is called front-back use of the online store. Since most of the bedsheet products
are packaged and there is no way of actually feeling the fabric before buying,
manufacturers/supplier are now providing retail stores with sample fabrics for display in
their stores.
ii. Back-front use:
In the above-mentioned case, the customer is buying the product after handling the
product at a store. This case is completely different than the one in which the customers
find a product in a store that they like. They do not buy the product at the store; instead
they go home with the product detail and find the best price for it on the internet and
purchase. This behavior is called back-front use of the online store.
27
3.4 Consumer Environment
In today’s U.S. market, the consumer has a high standard of fashion and style. The
customers are sophisticated and selective in their choices and the desire to stay with the
latest trends constantly evolves their sense of style. Thus, with the rise of home sales
since 2003, consumers have purchased more products for their homes (Anonymous,
2004c).
The industry divides the consumer segments based on total population, age groups,
decision drivers, etc. Springs Industries has done research for ‘Demographics based
consumer segmentation’. Table 8 is part of the Springs Industries Brand management
report to the stakeholders (Gillock, 2005).
Table 8: Demographics Based Consumer Segmentation Age 15-25 25-34 35-44 45-54 55-64
Avg. Spent on Home
Textiles Annually
$42 $109 $108 $155 $140
% of Population 14% 13% 15% 15% 10%
2005-2010 Proj. Pop.
Growth
+6% +6% -5% +5% +19%
Characteristics, Needs
and Purchase Decision
Drivers
Forming brand
and retailer
preferences
Value, Style,
Aspiration
Some New Nesters
and Brides
New Nesters
New Brides
Young
Mom’s Value,
Selection,
Infant/Toddler
Establishing
Home
Moms w/kids
& teens
shopping for
the whole
family
Key at BTS
Value, Quality,
Kids & Teens
Heaviest
Spenders
Empty
nesters:
Peak income
years
Willing to
pay more for
quality
Grandparents
and retirees:
heavy spenders
Purchasing
2nd homes
Willing to pay
more for
quality
28
Source: (Gillock, 2005): original source: U.S. Consumer Expenditure Survey, U.S.
Department of Labor Bureau of Labor Statistics, Retail Forward ShopperScape
Generation X – “the generation following the baby boomers (especially
Americans and Canadians born in the 1960s and 1970s)” (Princeton, 1998) – is the
wealthiest consumer segment in America compared to its parents. Generation X has
increasing buying power and need instant gratification (Grimm, 2004). It is important to
know what they want. Table 8 shows that the younger segment (under 25, Generation Y)
is not the largest segment, but is a growing segment with lots of buying occasions (first
dorm, first apartment, first home, etc.) in their lives. Families (25-44, Generation X) are
the largest segment with increasing buying power and needs and Empty Nesters (45+,
Boomers and Grands) are the fastest growing and heaviest spenders with the highest
disposable income (Gillock, 2005). Based on these implications, a brand portfolio should
be strategically built in order to address this range of shoppers based on their purchase
needs.
3.4.1 Market Projections:
Figure 11 displays the projected bedding markets for some of the larger cities of the U.S.
in 2007. The northeastern region (Chicago, NY, Boston, etc.) and the southwestern
region (LA, Houston, Dallas, etc.) are forecasted biggest markets. These regions are also
considered as the fashion drivers of the industry (Poor, 2005).
29
Largest Bedding Market Sales 2007 (Million $)
0.00
500.00
1,000.00
1,500.00
2,000.00
2,500.00
3,000.00
Chicago,
IL
New York, N
Y
Los A
ngeles
, CA
Boston
, MA/N
H
DC/MD/VA/W
V
Atlanta, G
APA/N
J
Houston
, TX
Detroit,
MI
Dallas,
TX
Figure 11: Largest Bedding Markets, 2007
Source: (Market Share Reporter, 2004a)
3.4.2 Buyer Characteristics
Cotton Incorporated’s Lifestyle Monitor TM conducted home fabric studies and Consumer
Behavioral Surveys in 2003. These surveys were done in order to find out what
consumers are looking for in their sheets? As a result, three of the most important
bedsheet purchase factors found were size/fit, softness and durability.
Some of the results from these surveys are as follows:
A typical household spends an average of $57 per bedding item and 73% of these
consumers consider cotton fiber an important feature when purchasing bedding
items (Anonymous, 2003).
64% of U.S. consumers were willing to spend more on 100% cotton products
compared to other synthetic or blended products (Anonymous, 2004b).
Consumers spent an average of $123, purchasing sheets in 2003, at $36 per sheet
set
30
92% of the people surveyed said they prefer buying packaged sheet sets instead of
single sheets. It is more convenient for the consumers to buy sheet sets which
include a flat sheet, a fitted sheet, and pillowcases of the same color in one
package rather than to shop around in search of matching shades (Anonymous,
2004b).
Two-third of the people in 2003 indicated that they like to feel the sheet before
they purchase them.
Kim Kitchings of Cotton Incorporated was quoted, '[t]he women's role has changed
dramatically. She is most likely a working mom and definitely time-poor'. There is a
sense of convenience in stores like Walmart, K-mart, & Target which integrates a diverse
range of products into one complete store. Kitchings further mentions that females are
more prone to fashion sense, and therefore, they are more style-oriented when it comes to
shopping. "In this marketplace, perception is everything. More options, more style,
more convenience, and more service at retail will go a long way toward making shopping
an even more pleasurable experience for everyone this year" (Anonymous, 2004c).
3.4.3 Change in consumer preferences
As shown in the Table 9, twenty years ago consumers preferred fashion appeal and look
of home fabrics over performance and costs, whereas now, consumers are well educated
about the products and prefer fabric performance (softness, durability, etc.) over the price
and fashion appeal of the product. This proposes an opportunity for the industry to give
the consumers what they want.
31
Table 9: Factors important to home fabrics purchases
Factors important to home fabrics purchases Rank 1985 2003
1 Fashion Appeal Softness 2 Fabric Performance Durability 3 Retail price points Price 4 Advertising Life of Product 5 Packaging Color 6 Brand recognition Added value 7 Designer and Licensed name Brand name
Source: (Earley, 2005), (Poor, 2005) and (Delphi Survey of the U.S. Sheet and Pillowcase
Market 1980 - 1985, 1985)
3.4.4 Buyer Decision Factor
“Today’s consumer is savvy, knowledge-driven and wary, and if he or she is confused,
won’t buy. There is a whole cadre of product features and benefits that drive the
purchase decision in sheets. One of the questions the consumer is now asking is, ‘What
are the sheets going to do for me?” – Rick Canter, President of core sales at Springs
Industries (Anonymous, 2004b) pg.1
According to Rick Canter, consumers are purchasing products based on what they need:
Instant gratification and best buy. It is difficult to fulfill both of these demands. Thus the
customers need to find products with a balance between quality and cost.
3.4.5 Communicating to the Customer
In order to communicate effectively to the customer, it is important to know where
consumers are getting ideas for their home products. The figure below displays the
percent of consumers who get their ideas from four of the listed marketing platforms.
32
These percentages are based on Cotton Incorporated’s Lifestyle MonitorTM and Home
Study of 2003 (Earley, 2005).
Figure 12: Home Product Ideas
Based on these percentages, a firm can communicate directly to the customer through the
platform that they most pay attention to. Springs Industries has allotted a certain budget
for sponsorship and product placement on TV shows, web marketing, catalogs, print ads
and top publications (Gillock, 2005).
From 1998 to 2003, consumers between the ages of 16-70 were surveyed by Cotton
Incorporated on where they get their ideas from for home fabrics. It was from window
store displays followed by television commercials (Anonymous, 2004c). They are also
getting their ideas from other places such as magazines, offering tips on decorating
anything from wallpaper to window treatments, to rugs and bedding accessories.
33
3.4.6 Thread Count
Thread count is the number of threads woven lengthwise and crosswise into one square
inch of fabric (Higgins, 1948). Bedsheets are softer and more luxurious with higher
thread count. Tighter weaves with higher thread count enhance comfort and durability of
the substrate and thus get more expensive as the thread count increases.
The following graph shows the sheet sales by thread count in 2003. Approximately 95%
of the sheet sales were for less than 250 thread count. This shows that majority of the
sales were for low-cost and low thread count sheets. Only 5% of the total sales were for
high end, bette
r quality products.
Figure 13: Sheet sales by Thread Count
Sales
180 Count, 44.5%
200-250 Count, 43.5%
Under 180 Count, 8.0%
250 and above, 4.5%
Source: (Market Share Reporter, 2004b)
34
3.4.6.1 Thread count inflation
Thread count is a big factor in the sheeting industry. It is becoming a major attraction for
the customers’ buying decision. According to LDB interior textiles, consumers are
demanding higher count sheets at more reasonable prices. There was time when 180- or
200-thread count sheets were considered standard and lower end sheets were generally
128-thread count (Schwartz, 2003). Nowadays, 1000 thread count sheets are available in
the market and are quickly replacing lower count sheets.
According to the Cotton Incorporated’s Lifestyle Monitor, customers agree that sheets
with higher thread counts are better quality (90%), softer (79%), and more likely to be
made of cotton (75%) (Anonymous, 2004b). This shows that 90% of the customers are
judging the products for better quality simply on the basis of thread count. It is true that
higher thread count sheets are generally better quality and softer than lower thread
counts, but customers need to understand that the thread count is not the only measure of
quality. Other measures like weaving patterns, finishing, embellishments, fiber types and
qualities, all play equally important roles in creating a luxury product (Schwartz, 2003).
The advent of high thread count sheets has raised the debate on whether thread counts
really determines the quality of the product. This has made the customer think high
thread count is better. However, the number of threads per square inch does not
necessarily guarantee a superior quality. Thread count is only one of the factors that
contribute to quality (Leizens, 2001). Making it the only component for quality is naïve
as there are other factors such as fineness of yarn, weaving and finishing techniques, and
overall embellishments which all contribute to a well-rounded quality product. Thus,
simply increasing thread count would not necessarily result in a quality product.
35
3.4.6.2 Thread count issue with ASTM Standard
The American Society for Testing and Materials (ASTM) International is one of the
largest voluntary standards development organizations in the world for technical
standards for materials, products, systems, and services. These standards are known for
their high technical quality and market relevancy that guides design, manufacturing and
trade in the global economy (About ASTM International, 2005). Appendix 1 includes
most of the standard textile definition from the ASTM standards. Appendix 6 shows the
Standard Performance Specification for Woven and Knitted Sheeting Products for
Institutional and Household Use (D5431).
Currently the definition of count in standard ASTM terminology is as follows (ASTM,
2005):
Figure 14: Standard ASTM definition of count
There is no definition for thread count because it is undergoing a change. This change is
currently in progress due to an issue with multi-plied yarns in the definition of the thread
count. For instance, an 800 thread count sheet set with 2-ply yarn is actually a 400 thread
count sheet set. The new rule states that warp and weft strands are counted as single units,
regardless of the number of yarn plies. According to Bob Holcombe, chairman of the
ASTM subcommittee in-charge of redefining the definition of thread count, a sheet
package claiming 800 threads per inch using two-plied yarns should correctly be labeled
as a 400-thread count (ASTM, 2005). Details of this change are listed below:
36
Table 10: Thread count Standard status
Current Regulations: ASTM D7023-04 Proposed Standard Revision: ASTM WK5591
• Regulation regarding standard terminology
relating to Home Furnishings
• Requires that companies label their products as
single yarns in reported thread counts, even if plied
or instances of double pick insertion
• U.S. Customs does not currently enforce this
standard
• Proposed revision initiated 8/12/04 by ASTM
Subcommittee D13.63 on Home Furnishings (Bob
Holcombe)
• Proposes clear definition being developed under
ASTM D7023-04 for correctly assessing thread
counts in sheets and pillowcases
• Approval and Implementation: Still Pending
37
3.5 Marketing Strategy
There are two kinds of promotional marketing strategies: PUSH and PULL. A PUSH
marketing strategy is the one in which the manufacturer aggressively promotes the
product to retailers, and the retailers aggressively promote the product to consumers. A
PULL marketing strategy is the one in which manufacturers and retailers spent a lot of
money on advertising and consumer promotion to build up consumer demand. If
effective, the consumer will ask retailers for that product and the retailers will in-turn
order that product from the manufacturers (Kotler, 1986). Following is an analysis
diagram of the bedsheet marketing strategy based on the literature review:
Figure 15: Marketing Strategy
38
3.5.1 Push
Springs Industries pushed Wamsutta ComfortZone™, with the ability to wick the
moister away and keep the sheets dry quickly when wet, to the retailers and
marketed it to the consumer. This resulted in high returns.
Cotton Incorporated pushes product ideas to the manufacturers and the retailers,
based on the industry trend forecast and advertises these product ideas to the
consumers at the same time (Earley, 2005).
3.5.2 Pull
As consumer knowledge regarding wrinkle-free fabrics increased – a demand for
wrinkle-free sheets arose into the market.
Cotton Incorporated pulls product ideas from the consumers based on consumer
attitudinal research and behavioral surveys (Earley, 2005).
39
3.6 Brands:
Strong brands enhance customer loyalty and enable the company to maintain and grow its
market share. U.S. manufacturers have realized this opportunity and have invested their
efforts into making a strong brand image for their products. Springs Industries have
sustained efforts to accumulate a strong brand portfolio (SpringMaid and Wamsutta), and
it ranks number one in retail bedsheets and pillowcases market share (Gillock, 2005).
A brand exists in the mind of the consumer, whereas a product sits on the shelf. Springs’
strategy is to create differentiation into their products through branding (Gillock, 2005).
A strong brand:
Provides a unifying set of values and attitudes
Lends credibility to existing and new product offerings, and
Fuels growth and diversification of product portfolio
According to DSN Retailing today, top brands in 2004 for domestics, including bedding,
bath and linens among consumers are as follows (Anonymous, 2004a) (percent of
consumers who recognized the names):
Table 11: Changes in top bedding brand recognition
BRANDS 2003 2004 Change CANNON 29% 20% ↓
MARTHA STEWART 18% 20% ↑ POLO/RALPH LAUREN 5% 8% ↑
MARTEX 3% 4% ↑ WAMSUTTA 3% 2% ↓ FIELDCREST 6% 1% ↓
DAN RIVER 0% 1% ↑ SEARS 2% 1% ↓
PEPPEREL/LADY 1% 1% ↔
40
3.6.1 Challenges in Sheeting Brands:
A retailer can try to manufacture its products (integrating backwards) or a raw material
supplier can try to get into the manufacturing of the products that it supplies raw material
for (integrating forward). According to the literature, mass merchandisers are the leaders
in home textile products sales. This gives them power over controlling the price for the
required quality. The retailers (buyers) can integrate backwards in the supply chain and
become a competitor. On the other hand, the suppliers can integrate forward and also
become a competitor. This poses a high threat for the manufacturing sector of the supply
chain.
41
CHAPTER 4: ANALYSIS
This chapter analyzes and identifies the strengths, weaknesses, opportunities and threats
of different aspects of the bedsheet industry. A Bedsheet industry analysis is mentioned
in this chapter using tools like Value Chain and Porter’s Five Forces.
4.1 SWOT Analysis
SWOT analysis is a scan of the internal and external environment. It helps matching the
firm’s resources and capabilities to the competitive environment in which it operates. The
following diagram shows how this analysis fits into an environmental scan. (Bradford et
al.)
Environmental Scan
Internal Analysis
External Analysis
Strengths Weaknesses Opportunities Threats
Figure 16: SWOT Matrix Structure
Thus, environmental factors internal to the firm are classified as strengths or weaknesses,
whereas those external to the firm are classified as opportunities or threats. Instead of an
internal and external analysis of a firm, this analysis is the internal and external analysis
of different aspects of the industry based on manufacturers’ perspective. The following is
an analysis of some of the aspects for the bedding industry and recommendations for
improvements, if any. These aspects are: Consumer behavior, Retail, Manufacturing,
Marketing/Merchandising and Supply chain/logistics.
42
4.1.1 Consumer Behavior Table 12: Analysis of Consumers
Analysis Strengths Gradual increase in market share
64% prefer cotton products Weaknesses Not educated enough about the product
Not willing to pay an extra dollar for a more value added product Opportunities More options + more style + more convenience = more sales
Current fashion content for bedding is printing, color and thread count Targeting consumer segments individually Any unfulfilled customer need Consumers are looking for size/fit, softness and durability Buy sets instead of individual sheets
Threats Shifts in consumers likes and dislikes Like to feel the fabric before buying – constrains distribution channels
Recommendations for improvements
Educate the customer Feedback channels
4.1.2 Retail Relationship Table 13: Analysis of Retailers
Analysis Strengths No significant strengths for manufacturers’ retail relationship
Weaknesses Inefficient or non-existing feedback channels from customers Majority of the sales are for low cost complimentary products Price vs. quality ratio – too risky to carry up-scale more expensive products
Opportunities Visual merchandising using new technologies Increase in online shopping Low-cost products have highest sales
Threats Product cannibalization – Traditional brands vs. Private Brands Power in Supply Chain High risk to carry up-scale more expensive products Increased competition
Recommendations for improvements
Formal Feedback System
4.1.3 Manufacturing Table 14: Analysis of Manufacturers
Analysis Strengths New technological advance for more value added products – proactive
State-of-the-art manufacturing facilities Retail relations
Weaknesses Not a lot of power in the Supply Chain High cost structure
Opportunities If you can’t beat them, join them – start outsourcing your own products Find niche markets
Threats Retail going directly to the suppliers Import increase – more low-cost outsourcing High competition – you have to be the best to be competitive Rise in interest rate – people moving back with their parents
Recommendations for improvements
Design for obsolescence – low product life Use forecast and not wait for orders – for efficient and Just-In-Time supply Strong brand names
43
4.1.4 Marketing/Merchandising
Table 15: Analysis of the industry’s Marketing/Merchandizing efforts
Analysis Strengths Brand recognition – strong brand names
Weaknesses Lack of innovation and marketing strategy Lack of ‘simple marketing’ – people don’t care because people don’t know Standard product – no formal New Product Development process
Opportunities Target the right market for the right product by creating a marketing plan around a new product idea before hand
Obsession of thread count Brand loyalty Closets are bulging – people need to buy new products (Poor, 2005)
Threats How to take cotton (old product) and make it interesting again New regulations (2-ply yarn issue) Obsession of Thread count – replacing brand names
Recommendations for improvements
Trend forecasting Build marketing strategy for the product idea Increase fashion sense by exploiting thread count, new colors and new print designs
4.1.5 Supply Chain/Logistics
Table 16: Analysis of the Industry Supply Chain
Analysis Strengths Distribution network – supplying directly to the stores
Strong distribution channels No substitute products
Weaknesses Lack of trust Rivalry
Opportunities Sourcing of U.S. yarns overseas Current lead time 53 weeks – opportunity for improvements Consistent growth in market People buying more houses Arrival of new technology Loosening of regulations – WTO policies (removal of international trade barriers)
Threats Increased global competition Price driven industry – high standards can not be accomplished at low price Changes in standards
Recommendations for improvements
Collaborative supply chain
44
4.2 Value Chain Analysis:
Value chain analysis is a tool for firms to distinguish the operations that create value
compared to those that do not. It is important for firms to create value in their product
which is higher than the cost incurred to create that value. Michael E. Porter proposed a
generic Value Chain model in 1980. This model is as follows (Porter, 1985):
Figure 17: Porter’s Generic Value Chain
Support Activities
Firm Infrastructure
Technological Development
Human Resource Management
Procurement
Primary Activities
Inbound Logistics
Operations Outbound Logistics
Marketing & Sales
Service
This generic Value chain is segmented into primary and support activities. “Primary
activities are involved with a product’s physical creation, its sale and distribution to
buyers, and its service after the sale. Support activities provide the support needed by the
primary activities to be implemented” (Hoskisson, Hitt, & Ireland, 2004) pg. 395. Based
on the site visit to ‘Springs Industries’, the value chain for sheeting products at ‘Springs
Industries’ is as follows:
45
Support Activities
Primary Activities
+ Two suppliers to take advantage of competitive prices
+ Equipped with latest machinery and state-of-the-art distribution center
+ Best match - right people to run the operations
+ Wagon Wheel firm infrastructure with centralized Merchandizing and Marketing
+ Online polls and feedbacks + Quality assurance
+ Mirror Manufacturing + State of the art equipment + Performance measures for production
+ Automated conveyer belts and conveyer bots + Performance measures for warehousing and material handling
+ Advertising & promotional campaigns + Appropriate distribution channels + Strategic retail partnership + Strong sales force
+ Standardized specifications for raw materials through out the globe + Use of computer aided simulations to optimize the inventory levels
Figure 18: Value Chain for sheeting products at Springs Industries
Primary Activities
Inbound Logistics: includes activities like material handling, warehousing, and inventory
control, used to receive, store, and disseminate inputs to a product. Springs, being a
vertically integrated company, receives fiber from their suppliers and stores it in the
warehouse at their Katherine Manufacturing facility for in-house manufacturing. Springs
makes sure that this process takes place as efficiently as possible to provide maximum
flexibility to the manufacturing plant. Springs is equipped with computer-aided
forecasting simulations in order to maintain optimal amount of inventory levels. With the
fluctuating nature of costs for cotton (Appendix 4), Springs purchases cotton and other
synthetic fibers from two suppliers in order to receive competitive prices for the fiber, as
well as the latest in fiber development. This allows Springs to bargain for required prices
of cotton and other raw materials.
46
Springs strictly follows certain specifications of raw materials for manufacturing around
the globe. If the product is manufactured overseas, the standard raw material
specifications help keep a consistent quality of the final products (in-house or
outsourced).
Operations: Springs has been mindful of the changes taking place in the global market
place. They have realized the need for outsourcing but they also make sure that they have
mirror-manufacturing capabilities. This means that Springs Industries can manufacture all
products that are being outsourced if the need arises. Mirror manufacturing is obtained by
operating a vertically manufacturing structure; from opening the fiber bales through yarn
and fabric production and quality control. Springs fabrication facility receives roll stock
from offshore suppliers and other Springs plants and make sheets. The company is
equipped with state of the art fitted and flat sheet machine, similar to those shown in the
Technology section earlier in this paper. Springs also follows certain performance
measures for the production and the quality assurance. These measures involve:
Interruption Index (a measure of unscheduled interrupts) during the production of
the bedsheets
Productivity – measured in terms of pounds of fiber per employee
Targeted quality versus not first quality ratios (First quality: finished products
with required specification)
Outbound Logistics: The Grace Distribution Center of Springs is equipped with
automated conveyer robots and conveyer belts. All the products either outsourced or
47
manufactured in-house are distributed from this center to all customers. The conveyer
robots transport crates of packaged sheets on a specified path from the Grace Fabrication
center to the distribution center. The robots place the crates onto the conveyer belts in the
distribution center. These conveyer belts are equipped with infrared sensors reading the
barcodes on each box and thus redirecting it to either the loading zone or the warehouse
for collection and storage. The operation is highly automated and is driven by computer
sensors at a very high speed. The warehouse is equipped with high story shelves for the
storage of packages until an order is being made by the client. Performance measures for
material handling and warehousing for Springs include: (Lovejoy, 1996)
Micro-management of inventory – keeping the inventory level as low as possible
(e.g., Just-In-Time delivery)
Mix of packaging of different quantities in the inventory. This will allow the
retailers to order desired quantities with a combination of different products.
Marketing & Sales: Springs has developed strong advertising and promotional
campaigns by developing and supporting their sales force. Springs believe that “a brand
provides a unifying set of values and attitudes.” Springs Industries has based its
marketing strategy on the value of brands as it lends credibility to existing and new
product offerings. For instance, Springs’ Wamsutta brand campaign has placed the
products as highest quality home fashion products to specialty and department stores.
Wamsutta and Springmaid brands are being promoted by Springs through print ads and
other visual media. The company sponsors primetime television shows like ‘The
Apprentice’ and ‘The Bachelor’ to present them as an exclusive brand.
48
Springs sells their product to mass merchandisers, specialty stores and departmental
stores. The company is the top supplier of bedsheets and other home textile products for
Walmart, K-Mart, Target, Linens’ N Things, Bed, Bath & Beyond, May Company,
Macy’s, Bloomingdale’s, JCPenney, Sears and Kohl’s through significant retail
partnership.
Services: Springs provides numerous after-sales services. Springs asks for comments,
compliments and feedback on the individual brand websites. According to June 2004
Brand Tracker at Wasutta.com Quick Poll, 84% of those aware of Wamsutta brand would
consider buying the brand again.
Compared to the competitor’s abilities, Springs rate each primary activity as follows
("Springs Industries," 2005):
Table 17: Primary Activities
Superior Equivalent Inferior Inbound Logistics √ Operations √ Outbound Logistics √ Marketing and Sales √ Services √
Support Activities
Firm Infrastructure: The structure of decision making at Springs is similar to a wagon
wheel as shown in the figure below. All the decisions go through the center,
Marketing/Merchandizing, as it is the hub of activity with in this organization. Customer
feedback, supplier information, R&D information as well as sales reports are the raw
material for merchandizing/marketing to develop a plan for the season(s).
49
Figure 19: Wagon Wheel infrastructure for Springs Industries
Human Resource Management: This is one of the biggest strengths of Springs to keep
them competing in the home textile market. The company has always believed in
recruiting and maintaining the best people to run the operations and management. Springs
identifies the talent in the organization and keeps them in the organization even if they
have to shut down a facility (Scott, 2005).
Technological Development: Springs has set a benchmark in the industry in terms of
technological development. They have state of art machinery for their operations and
50
logistics. They have un-manned vehicles to transfer finished goods inventory to and from
the warehouse. In the operations department, they have installed low labor operation
machinery that helps reduce labor cost and increase productivity, thus making the
organization more competitive.
Procurement: It is the responsibility of this department to make sure that all materials
especially raw materials for manufacturing are according to the standards and quality
level set by Springs Industries. The raw material sourcing is of high value for Springs and
they make sure that the outsourced manufacturers follow the same quality levels and
standards.
Compared to the competitor’s abilities, Springs rate each primary activity as follows:
Table 18: Support Activities
Superior Equivalent Inferior Firm Infrastructure (Landers, 2005) √ HR Management (Scott, 2005) √ Technological Development ("Springs Industries," 2005) √ Procurement ("Springs Industries," 2005) √
51
4.3 Industry Analysis
Michael E. Porter provided a framework that models an industry as being influenced by
five forces. It is important to analyze the ability of the firms to deal with these outside
forces because the collective strength of these forces determines the ultimate profit
potential in the industry. The bedsheet industry in particular is relatively intense in which
no firm earns spectacular returns. Figure 20 is a diagram for the state of competition in an
industry based on five basic competitive forces (Porter, 1980):
Figure 20: Forces Driving Industry Competition (Porter, 1980)
The following is an industry analysis for the Bedsheet Industry:
52
4.3.1 Threat of New Entrants
It is important to identify new entrants because:
I. They threaten the market share of existing competitors.
II. They bring additional production capacity – hold consumers’ prices down, resulting
in lower returns.
In the sheeting market, there are several barriers to entry that make it difficult for firms
to enter into the market. Some of these are listed below:
Textile companies are investing a lot of money in research and development. For
instance, sheets like WestPoint Stevens’s Precious Sleep X-Static fiber sheets,
Martex Convertibles® reversible sheets and Natural Stretch® sheets or Springs’
Sleepology Collection or Pillowtex/Fieldcrest-Cannon’s Snug & Savvy® sheets
are all patented, and the firms own rights to manufacture and/or license them.
These brands have now penetrated the market and have recognition among
customers. For new firms to enter into this market, high capital investments are
required in order to create new innovative products.
In order to reduce costs, manufacturers have to be up-to-date with the latest
technology. Currently, the U.S. sheeting manufacturers are equipped with state-
of-the-art machines for fiber, yarn, textile, dyeing & finishing, cut & sew, labeling
and packaging processing. These machines help keep the costs low, which helps
them in competing against low-cost overseas manufacturing. This also increases
the capital requirements to enter into the industry.
53
New WTO quota free policies on sheeting products starting January 1st, 2005
have encouraged manufacturers to move their own manufacturing overseas, thus
causing the U.S. sheeting manufacturing to dramatically decrease.
Mass merchandisers are the highest selling distribution channels for sheeting and
other home textile products. Consumers are tending towards low-cost products.
This shows that the majority of the consumers are willing to pay no or very low
switching costs for a higher value product. This creates another barrier for new
entrants.
4.3.2 Bargaining power of Buyers
The bedsheet market is not a monopsony – a market in which there are many suppliers
and one buyer – but still the number of low-cost manufacturers is a lot more than the
number of buyers and retailers. This makes the buyers or retailers more powerful. The
bargaining power of buyers/retailers in the U.S. textile industry is high because:
Mass merchandisers sell to the majority of the market. Mass merchandisers’ sales
exceeded $3.3 billion of the $8.3 billion bedding industry. This gives them more
power over the prices of the products since they are buying a significant portion
of the bedsheets from the industry. Nowadays, mass merchandisers like Wal-Mart
and Target ask for the cost of the product with the product specification. This is
creating a lot of competition in the market solely based on cost. The only exit
strategy for the manufacturers/suppliers out of this is by creating new and
improved products and pushing them into the market (Earley, 2005).
Buyers nowadays are becoming more and more proactive. Walmart, Target, Bed
Bath & Beyond, Linens N Things and other department stores are creating their
54
own private brands and are going directly to off-shores manufacturers, cutting the
middlemen. This gives them an opportunity to integrate backwards into the supply
chain and thus can become a threat for the manufacturers/suppliers.
Any retailer can always switch to a lower cost supplier for the same product.
4.3.3 Bargaining power of Suppliers
In the past few years, there is a rapid evolution in imported sheets. They accounted for 54
percent of U.S. sheet consumption during the first quarter of 2005 versus 31 percent
during 2004's first quarter (Seminar, 2005). This shows that the buyers are moving
overseas and the suppliers have to compete with the low-cost manufacturing overseas.
The bargaining power of the suppliers is low or weak for the sheeting industry due to the
following reasons:
Bedsheets products are being standardized, thus increasing the number of
suppliers.
Consumers are purchasing commodity products. For example, a private brand at
Linens’ N Things called LNT Home offers full, queen and king size sheet sets of
higher than 250 thread count, for a price range of $59.99 - $99.99, whereas, Liz
Claiborne sheets sets for the same size and quality range from $129.99 - $179.99
(Appendix 6). The majority of the consumers prefer quality over looks and price
over brand name. This makes the private labels more appealing to the consumer.
Manufacturers like Springs are selling their own brands in their own outlet stores.
There are not many of these stores and thus very low market penetration. It is hard
for Springs to integrate forward in the supply chain and become a buyer in order
to support its own manufacturing capacity. The sales through the outlet stores are
55
not high enough to fulfill the production capacity and thus making it difficult to
integrate forward in the supply chain.
4.3.4 Rivalry among existing firms
Rivalry among existing U.S. textile firms, specifically in bedsheets, is high or intense.
This is due to the following reasons:
Table 19: Rivalry among existing firms
Industry
Characteristics
Examples in the bedsheet industry
1. Market growth The bedsheet industry has had a slow and uniform market growth in
the past five years. This causes the firms to fight for market share,
thus increasing the rivalry
2. Fixed costs Fixed costs (labor, energy, supplies, etc.) for the U.S. sheeting
manufacturers are higher than the costs overseas. In order for the
firms to attain the lowest unit costs, the firm must produce near
capacity, which it will have to sell to the market which would result in
increased rivalry. For instance, Springs must manufacture to capacity
in order to compete against competitors like Franco Industries who are
mostly outsourcing their products. Thus increases the competition
among the suppliers to fight for the market share.
3. Product Differentiation Product differentiation is low for the bedsheets products in the U.S.
The majority of consumers are buying low-cost products – whichever
brand it might be. This causes higher levels of rivalry among the
firms. There is also a significant amount of brand recognition in the
56
top small portion of the industry: Spring’s Wamsutta vs. WestPoint
Steven’s Natural Stretch™ sheets have customers with brand loyalty
which tends to constrain rivalry
4. Industry Shakeouts Springs is attempting to exit the window covering business in order to
concentrate more on the bedsheet industry. This causes the other firms
like WestPoint Stevens a threat of a stronger competitor with more
concentrated efforts to survive in the sheeting industry.
4.3.5 Threat of Substitute Products
Threat of substitute products in the bedsheet industry is very low because the domestic
sheeting is a commodity product and will not change.
57
CHAPTER 5: DISSCUSSION & CONCLUSION
Prices drive all the aspects of the bedsheet industry. According to the analysis, the U.S.
bedsheet industry requires changes in order to survive in the changing world. Some of the
conclusions of this research are listed below:
Increase in market share of the bedsheet industry in the U.S. has triggered higher
competition among major manufacturers and retailers. This competition is driving
prices placing strong pressure on U.S. manufacturers. In order to compete in these
conditions, manufacturers are strategically outsourcing more and more from
overseas through licensing, at the cost of U.S. jobs.
Feedback channels from the consumers are not very effective or do not exist for
the retailers. There are not enough opportunities for the consumers to go back to
the retailers and say “Well, I came in and shopped at your store today, but I didn’t
really like what you had to offer; have you ever thought about offering this.” This
creates a communication gap between the consumers and the rest of the supply
chain. In order to fulfill this communication gap, the industry funds companies
like Cotton Incorporated who pushes product ideas to the manufacturers and the
retailers based on consumer attitudinal research, behavioral surveys and industry
trend forecast and advertise these product ideas to the consumers at the same time.
Thread count has been a growing trend over the past couple of years due to lack
of innovation in the sheeting area. A manufacturer can put a higher number on the
sheet and the consumer would buy it thinking that it is better quality. It is all
about the numbering game; it is a quantifier that the consumers somehow attach
58
themselves to, thinking that the higher number is obviously going to be better than
a lower number but that is not always the case (Earley, 2005).
The bedsheet industry has two different kinds of customers: 1) Customers who do
not care about how much they spend on sheeting, so they are willing to pay for
the highest thread count, 2) The other type of consumer is totally price driven.
They know that it is just sheet and do not care what it looks like. Since the
majority of the consumers are shopping based on cost and even if we offer them
some sort of innovation, according to consumer reports they are not willing to pay
a dollar extra. Thus the industry targets innovation to the higher end of the
market, where the consumers are just a small portion of the total sales.
The industry forecast is on average 18 – 24 months advance to the season,
whereas, the manufacturing lead-time from idea to a final product in the shelf is
on average 10 – 12 months (Lovejoy, 2005).
59
RECOMMENDATIONS FOR FUTURE RESEARCH
1. Using the direction in this research, other product markets of the Home Textiles
Industry in the U.S. can be analyzed, such as bedspreads, towels, draperies, window
coverings, etc.
2. Using the Industry analysis from this research, research can be undertaken in order to
monitor the shifts in corporate-level and business-level strategies for the bedsheets
manufacturers of the U.S. to survive in the constantly changing market.
3. Using the SWOT analysis of the U.S. sheeting products from this research, different
business plans can be proposed to help match the product to the right customer.
60
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Appendix 1 Definition of Terms
Brand: A name, term, sign, symbol or
design or combination of, intended to
identify goods or services of one seller or
group of sellers that differentiate the good
from the competition (Kotler, 2003).
Blanket: These are made of various
constructions and compositions which
provide different degrees of warmth,
softness and durability. They usually
woven but can be knitted or stitch-knitted.
They may be composed or of blends of
cotton, wool, nylon, acrylic or polyester
(Raul, 1998).
Combed cotton: During the spinning
process, fibers are put through an
additional straightening process until short
fibers or noils are removed by fine toothed
combs. A cleaner, more uniform and
lustrous yarn results from this process
(Raul, 1998).
Coated fabric: A flexible material
composed of a fabric and any adherent
polymeric material applied to one or both
surfaces.
Comforter: A bedcovering assembly,
consisting of insulating filler secured
between two layers of fabric, used
primarily to reduce heat loss.
Compact Yarns: Compact yarns are a
more compact version of the ring spun
yarns. They are more expensive and are
popular for their: higher tenacity, lowest
hairiness, higher abrasion resistance and
greater brilliance of color due to intensive
dye penetration (Nikoliæ, Stjepanoviè,
Lesjak, & Štritof, 2003).
Count: In woven textiles, the number of
warp yarns and filling yarns per unit
distance as counted while the fabric is held
under zero tension, and is free of folds and
wrinkles.
In knitted fabrics, the number of wale
loops and course loops per 25 mm.
64
Distribution channel: The route that a
product follows from the raw material
stage until it reaches the end consumer or
user (Mueller & Smiley, 1997).
Egyptian cotton: A long-staple fine
cotton grown chiefly in northern Africa
(yourdictionary.com). The five long staple
Egyptian cotton categories are; Giza 83,
Giza 90, Giza 85, Giza 89 and Giza 86.
Exports: Includes all types of products
shipped to foreign countries, or to agents
or exporters for reshipment to foreign
countries (US Census Bureau, 2004).
Fitted sheets: Fitted sheets are products
usually made with boxed corners,
sometimes elasticized with shape and size
to conform to the contours of the mattress
and used for covering the mattress on a
bed (ASTM, 2005).
Flat sheets: A large rectangular fabricated
product used for covering the mattress on
a bed and used for sleeping on or under
(ASTM, 2005).
Fineness: A relative measure of size,
diameter, linear density, or mass per unit
length expressed in a variety of units.
Flannel: A soft, medium weight plain or
twill weave fabric, usually made of cotton
with a napped finish on one or both sides.
The raised surface provides a fluffy
appearance and super soft, cozy feel.
Inventories: The quantity or value of
finished goods, work in progress, and
materials on hand (US Census Bureau,
2004).
Jacquard sheets: A weaving process
invented by Joseph Jacquard in 1801
allowing complex and complicated
patterns to be woven. The jacquard
process allows for a textured finish, given
the ability to use varying types of patterns
and yarns in the same piece for a
layered/dimensional effect. Every warp
yarn acts like an independent harness.
Jersey: A plain knitted (circular or flat)
cloth. It is elastic and may sag. It is
65
serviceable and drapes well. It is used for
dress-goods, shirting, under-wear and
bedding (Raul, 1998).
Mercerized cotton: A wet finishing
process for cotton yarn or fabric which
results in a stronger and more lustrous
yarn that takes dye better with brighter,
deeper colors.
Muslin: This is a coarse type of plain
weave fabric made of carded cotton or
polyester or cotton yarns (Raul, 1998).
Percale: A closely woven, plain weave,
spun fabric made from both carded and
combed yarns. Percale sheeting is the
finest sheeting available. The high thread
count gives the fabric a soft, silk-like feel.
Used for sheets and bedspreads. Percale
equals quality linens.
Pilling: The balling-up of fibers on the
surface of some fabric notably in sweaters,
suiting and/or sheeting (Raul, 1998).
Pima Cotton: Pima cotton is a generic
name for extra-long staple (ELS) cotton
grown in the U.S., Australia, Peru and in
very limited production in a few other
locations around the world. Pima is from
the gossypium barbadense species,
compared to gossypium hirsutum to which
upland cotton belongs. The primary
differences between Pima (ELS growths)
cotton and upland cotton are staple length
and strength of the fiber. In the U.S.,
cotton is considered to be ELS or Pima if
it is an inch and 3/8 or longer. Its strength
and uniformity measurements are
considerably higher than those of upland
cotton.
Production: The total volume of products
produced, including: products sold;
[transferred products,] and product that
undergo further manufacture at the same
establishment (US Census Bureau, 2004).
Retail channel: Also referred to as
marketing channel; sets of interdependent
organizations involved it the process of
making a product or service available for
66
use or consumption. Channels are
structured according to pricing strategies.
Examples include discount, mass,
specialty channels (Kotler, 2003).
Self design: Small design structure during
the weaving process. These designs are
possible with a dobby head for the loom.
Dobby and Brighton are some of the
examples for self-design.
Sateen: A weave construction that has
more yarn surface on the face of the cloth
than other basic weaves giving a softer
hand and more lustrous look. Also, cloth
made with carded or combed yarns that are
usually mercerized, and has a very
smooth, lustrous surface effect that
resembles satin.
Store brand/private label: Merchandise
designed and produced by a retailer for
distribution within its own organization
(Mueller & Smiley, 1997), also referred to
as private label, private brand, house brand
and/or distributor brand.
Supima cotton: The name "Supima®" is a
licensed trademark owned by Supima and
its members. It is used to promote textile
and apparel products made of 100%
American Pima cotton, but is strictly
controlled by the grower organization. The
name "Supima" is an abbreviation for
Superior Pima.
Tapestry weaves: A closely woven
figured fabric of compound structure in
which the pattern is developed by the use
of colorerd yarns in the warp or in the weft
or both; a fine binder warp and weft may
be incorporated (Textile Terms and
Definitions, 1975).
Thread Count: Thread count is the
number of threads woven lengthwise and
crosswise into one square inch of fabric.
The higher the “thread count,” the softer
and luxurious the sheets are. Tighter
weaves enhance comfort and durability of
the substrate and thus get more expensive
as the thread count increases.
67
Yarn Dyed cotton: A yarn made of cotton
fiber that has been dyed (colored) before
being converted into a fabric either
through weaving or knitting.
68
Appendix 2: Cotton Incorporated:
Dana Poor – Manager of Home-trend forecasting (Cotton Incorporated)
David Earley – Global Product Marketing manager (Cotton Incorporated)
Springs Industries:
Tim Landers – Vice President, Bed Merchandising (Springs Industries)
Leslie Gillock – Vice President, Brand Management
Jennifer Scott – HR manager (Springs Industries)
[TC]²:
Jim Lovejoy – Director of Industry Programs [TC]²
Profiles of Peoples Interviewed
Dana Poor – Manager of Home-trend forecasting (Cotton Incorporated)
o Phone interview on Wednesday March 30th, 2005
o Contact Info: 488 Madison Avenue,20th Floor, New York, NY 10024
o Phone: (212) 413-8346, email: [email protected]
Ms. Dana Poor has a BS in Apparel Production Management from Auburn University in
Auburn, Alabama. Ms. Poor worked as the assistant product manager of knits and
sweaters for SAKS Inc. Prior to that she worked as a fashion trend specialist for Cotton
Incorporated in THE COTTONWORKS Fabric Library. Her current responsibilities
include research for, and conducting of, seasonal color and trend forecast presentations
for the home market. She also monitors trends in the home fashion market. She reports to
Ms. Kathryn Novakovic, director of fashion marketing.
David Earley – Global Product Marketing manager (Cotton Incorporated)
69
o Interview on Monday March 28th, 2005 at Cotton Inc. head office
o Contact Info: 6399 Weston Parkway, Cary, NC 27513
o Phone: (919) 678-2343, email: [email protected]
Mr. David Earley was appointed as a Global Product Marketing manager in December
1999. He began his career with Cotton Incorporated in 1993 as a research technician in
Fiber Processing, transferring to Fabric Development in 1996. He holds a B.S. degree in
textiles from North Carolina State University. His division works directly with textile
manufacturers and suppliers to provide hands-on support with product development and
manufacturing challenges. He reports to Mr. Michael R. Tyndall, senior director, Global
Product Marketing.
Tim Landers – Vice President, Bed Merchandising (Springs Industries)
o Interview on Wednesday May 11th, 2005 at Springs head-office (Fort Mill SC)
Time Landers holds a marketing degree from Arizona State University. He began his
career with Springs in 1991 as a sales rep in Dallas for the Wamsutta division. He held
successive sales positions in New York and Fort Mill with direct-account and corporate-
buying-office responsibilities. He joined the Wamsutta merchandising organization in
1997 and was promoted to merchandise manager in 1998. In July 2004, he was promoted
to vice president of bed merchandising with responsibility for all sheets and bedding
products. He succeeds Harvey Simon, who was recently named president of basic
bedding. He reports to Tom Gaffney, executive vice president and president of the
bedding and soft window units.
Leslie Gillock – Vice President, Brand Management (Springs Industries)
o Interview on Wednesday May 11th, 2005 at Springs head-office (Fort Mill SC)
70
Jennifer Scott – HR manager (Springs Industries)
o Interview on Wednesday May 11th, 2005 at Springs head-office (Fort Mill SC)
Jim Lovejoy – Director of Industry Programs [TC]²
o Interview on Friday May 6th, 2005
o Interview location: [TC]² head office (211 Gregson Drive, Cary, NC 27511)
o Phone: 919-380-2184
Jim Lovejoy is the Industry Director for SizeUSA, the National Sizing Survey, using the
3-D body measurement system developed by [TC]². Prior to this assignment, Jim was the
Project Director for the DAMA (Demand Activated Manufacturing Architecture)
research project, which defined the soft goods supply chain and produced supply chain
analysis tools. He also advises companies on how to obtain benefit from the supply chain
research.
Jim’s prior positions include Director of Store Systems/Europe at IBM, Director of Quick
Response Systems at IBM, General Manager of QRS, Inc. and Director of Sales
Development and Support at British Telecomm North America.
Jim currently serves on the Board of Directors of SEAMS, the Association of Apparel
Manufacturers, and is active on committees of the American Apparel and Footwear
Association, American Apparel Producers Network and the Voluntary Inter-industry
Commerce Standards Group.
Interview Questions
Cotton Incorporated:
1. What is the goal of Cotton Inc.? How is cotton better than synthetic fibers? What is your strategy to promote cotton as a value added product as compared to synthetic (cost-effective) fibers with same or similar properties? How do we push the real McCoy, Cotton over synthetics?
71
2. Is thread count an obsession nowadays among customers? It is an opportunity or a
threat for the industry? WHY? Does Cotton Inc, has any studies relating to this? (Lifestyle Monitor or ongoing market reports)
3. How is the industry dealing with the thread count inflation issues? (ASTM
standard – multi-plied yarns will be counted as one) What are/were cotton Incorporated efforts to deal with this situation?
4. Manufacturers are taking initiatives (proactive) and pushing new and better
products into the market? Is pushing strategy always good? What is your opinion about allowing the customer to ask for (pull) products into the market? Also ask about the generic product development process in bedding products versus apparel items.
5. ‘Bedsheets and pillowcases’ is a $2.5 billion (approx.) industry in U.S.? What are
the manufacturers doing to have their piece of the pie? How cotton incorporated is assisting them?
6. What are the industry’s efforts in “adding value to the product”? For example,
Natural Stretch™ sheets from WestPoint Stevens. Is this another effort to produce a differentiated product in order to survive in the market and compete with the low-cost standard manufacturing overseas OR is it an effort to make the customers less obsessed with thread counts? (March 21, 2005 issue of Lifestyle Monitor)
7. What is the long-term strategy of cotton inc. to continue the growth of the
industry in U.S.? Technological advances?
8. Every time I go to a furniture store there is some kind of sale? Since mattress and sheets are complimentary products. So if mattress value goes down, sales go up and thus the sale for bedding accessory (e.g. Bedsheets) goes up? What is the industries’ approach to pursue this strategy? (due to the fact that beds and mattresses are cheaper (due to sales events), customers are willing to spend more on accessories, like bedsheets)
9. What is the industry’s strategy to ‘Educate the customer’, does it help? Comfort
level goes up
10. How is the 2005 WTO policy affecting the manufacturing and distribution of cotton home textile products, especially bedsheets? Current inflation issue?
11. What should be the targeted lifetime of the product? Example, Replace it every
two years? How does it effect the lead time for the manufacturing of the product? (From idea to finished substrate)
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12. How do we shorten the turnaround time (lifetime) for the bedsheets? As turnaround time is decreasing people would buy more sheets more often than usual – more sales. What are the industry’s efforts to achieve this strategy? Ethics issue? We will promote what we want them to know?
13. Demographic changes – incorporate seasonal and annual change from apparel to
sheets?
14. How do we make seasonal variety of fashionable sheets in order to lead in bedding trends?
15. ‘Eco-boomers’ and ‘Generation Y’ are the wealthiest American as compared to
their parents? They need instant gratification? How can we get them what they want?
16. Being a home-trend forecasting manager OR global product marketing manager,
what are the current issues that you are facing in the global market space?
17. Is there anything that you can tell me that might be useful for my thesis/research?
18. In conclusion, what do you think are the opportunities, threats, strengths and weaknesses of the home textiles industry?
[TC]2
1. How efficient in the current textile supply chain? 2. According to DAMA, the industry should be demand driven. What measures are
being implemented to fulfill this purpose? (Surveys, focus groups – how to get feedback from customers)
3. Is Demand based supply chain always a good idea? Do the customers really know
what they want? Why PULL strategy and not PUSH strategy? Or there should be a balance between pushing and pulling on products?
4. Is there a (collaborative) product development process in the sheeting industry that
you know of? If not, you think if it’s a good idea? 5. What measures are being proposed in the DAMA project to reduce the pipeline time
by 50%? (Where can we apply improvements in the supply chain) What measures should be taken by the sheeting manufacturers to optimize their supply chain?
6. What are the risks and benefits of collaborative soft-goods supply chain?
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7. After the pipeline investigation in the DAMA project, it synchronization in the upper management was required and business practices have to change, not just the technological advances will help? What were these proposed changes?
8. Can you share the proposed Textile Industry Supply Chain business model with us for
this research? 9. Why top-down approach? How is it better than demand activated approach? (Top-
down = find what consumers are demanding and create products while optimizing the supply chain)
10. Collaboration efforts require sharing of more proprietary data and the companies
don’t trust each other. What is the motivation for the manufacturers to adopt a collaborative Supply Chain Model? (Competing with the low-cost overseas manufacturing, U.S. manufacturers need to join together and have a collaborative effort to improve the supply chain and lower their costs. But sharing data might not be something that everyone wants to do. This is a problem.)
Springs Industries
1. Is there a standard “Generic Product Development Process” for the sheeting or bedding industry? What is Springs Product Development Process? What is the lead-time for sheets from idea to final product – is it important?
2. When does brand come into the product development brief? Where is it positioned in
the company’s organizational structure? 3. Marketing Strategies:
a) What is ‘Springs’ marketing strategy for sheeting products? (PUSH, PULL or BOTH)
b) What are your efforts to exploit the most profitable products and SBUs? (Wamsutta, Springmaid, Apprentice)
c) How are these strategies changing in order to face the upcoming price driven challenges in U.S.?
4. How ‘Springs’ has characterized its market into different customer segments? For
instance, ‘Eco-boomers’ and ‘Generation Y’ are the wealthiest American as compared to their parents. They need instant gratification. What are ‘Springs’ efforts to attract and communicate to their customers?
5. What are ‘Springs’ efforts to create new and value added products? Is the customer
willing to pay more for a better product? (100% cotton wrinkle free sheets)
74
6. What are ‘Springs’ efforts to make seasonal variety of fashionable sheets in order to lead in bedding trends? How to incorporate seasonal and annual changes from apparel to sheeting? (From commodity to differentiated products)
7. What is the ratio of the in-house and outsourced production capacity? (From where
and what kind – aesthetics) What kind of inventory system do you use? 8. What is the pricing model of the products offered by ‘Springs’? How is it
determined? Is it different for different products, markets, geographical locations and/or brands?
9. What kinds of strategic alliance does ‘Springs’ have from retailers and other
manufacturers? Overseas and in U.S.? (Private labels vs. Company Brand) 10. U.S. is now considering import safeguards on textiles from China. Is it good news for
‘Springs’? How? 11. Some of your competitors are going through some rocky times lately. What do you
think that makes a big difference to keep your company moving ahead and prevent those circumstances? (Given the expertise in your area)
12. Being a VP, brand management OR bed merchandising, what are the current issues
that you are facing in the global market space? What are the current manufacturing issues that Springs is facing right now?
13. In conclusion, what do you think are the opportunities, threats, strengths and
weaknesses of the home textiles industry in U.S.?
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Appendix 3
Sheet Size Chart
Table 20: Bedsheet size chart
Bed Size Fitted Sheet Mattress Size Flat Sheet Mattress Size Pillow Size Twin 39 x 75 66 x 96 20" x 26" Twin XL 39 x 80 66 x 96 20" x 26" Full / Double 54 x 75 81 x 96 20" x 26" Queen 60 x 80 90 x 102 20" x 30" California or Western King 72 x 84 108 x 102 20" x 36" Dual or Eastern King 78 x 80 108 x 102 26" x 26"
Source: ASTM standards for domestic sheeting
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Appendix 4
Home Textile Industry Stats
Number of Establishments
765735 738
718738
714
19
0
100
200
300
400
500
600
700
800
900
1997 1998 1999 2000 2001 2002
Years
Number of EstablishmentsSheets and Pillowcases
Figure 21: Number of Establishments
Source: (2002 Economic Census: Manufacturing Industry Series, 2004)
The total number of home textiles products mills has decrease from 765 in 1997 to 714 in
2002. Only 19 of these establishments were manufacturing sheets and pillowcases. There
was approximately a 7% decrease in the manufacturing facilities which shows that the
manufacturing went down during 1997 and 2002.
77
Number of Employees
49,033
45,938
50,03648,869
44,396
40,140
4,258
0
10,000
20,000
30,000
40,000
50,000
60,000
1997 1998 1999 2000 2001 2002
Years
Number of EmployeesSheets and Pillowcases
Figure 22: Number of Employees
Source: (2002 Economic Census: Manufacturing Industry Series, 2004)
The total number of home textiles products mills’ employees has decrease from 49,033 in
1997 to 40,140 in 2002. 4,258 of these employees were working in the manufacturing of
sheets and pillowcases. There was approximately an 18% decrease in the number of
employees at home textiles products’ manufacturing facilities in U.S. during 1997 and
2002.
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Cost of Materials
3,952,749 3,915,339
4,338,950 4,400,279
4,039,3433,934,856
1,120,030
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
4,500,000
1997 1998 1999 2000 2001 2002
Years
Total Cost of Materials ($1,000)Sheets and Pillowcases
Figure 23: Cost of Materials
Source: (2002 Economic Census: Manufacturing Industry Series, 2004)
The total cost of raw material for the U.S. home textiles industry only had a slight
decrease from $3.95 billion in 1997 to $3.93 billion in 2002. The total raw material cost
for sheets and pillowcases in 2002 was approximately $1.12 billion. Thus, there was no
significant decrease in the raw materials’ cost.
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Total Value of Shipments
6,951,165
6,497,870
7,414,648 7,505,772
6,900,838 6,903,091
1,633,913
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
1997 1998 1999 2000 2001 2002
Years
Total Value of Shipment ($1,000)Sheets and Pillowcases
Figure 24: Total Value of Shipment
Source: (2002 Economic Census: Manufacturing Industry Series, 2004)
The total value of products shipped from U.S. home textiles manufacturers slightly
decreased from $6.95 billion in 1997 to $6.90 billion in 2002. It reached a peak in 2000 at
$7.50 billion. The biggest increase was during 1998 and 1999 when the total value of
shipments was increased by 14%.
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Appendix 5:
U.S. Manufacturers
Springs Industries, Inc.
Springs Industries is the leading manufacturer and supplier of bedsheets in the U.S. The
company was founded in 1887 with headquarters in Ft. Mill, SC. The current CEO and
chairman of the company is Crandall Close Bowles. Springs Industries supplies leading
retailers with a complete line of coordinated home furnishings designed to simplify home
decorating for every consumer. The company also produces and markets bed and bath
products for institutional and hospitality customers, home sewing fabrics, and baby
bedding and apparel products. Springs used to be a publicly owned company but in 2003
it was privatized, thus the latest financials are not available.
Springs’ major brands are Wamsutta®, Springmaid®, Regal®, Beaulieu®, Graber®,
Bali®, Nanik®, Dundee®, Wabasso®, and Texmade®. Major licensed brands are
Burlington House®, American Lifestyle®, Kate Spade, Court of Versailles, Liz At
Home®, Harry Potter®, mary-kateandashleyTM, Coca-Cola®, Serta®, and NASCAR.
Due to the increased outsourcing, Springs has downsized many U.S. plants and jobs in
the past few years.
According to Springs, its products are sold primarily through the company’s own sales
force to retailers, including catalog operations, department stores, home improvement
stores, mass merchandisers, national chains, and specialty stores.
Some of the competitors of Springs are: Avondale Incorporated, Burlington Industries,
Carter's, Coats Holdings, Crown Crafts, Dan River, Galey & Lord Swift Denim, Gerber
81
Childrenswear, Hollander Home Fashions, Keeco, Louisville Bedding, National Textiles,
Newell Rubbermaid, R. B. Pamplin and WestPoint Home.
Sources: (Springs Industries, 2005), (Datamonitor Company Profile Authority, 2005),
(Hoover's Company Records, 2005)
WestPoint Stevens, Inc.
WestPoint Stevens is the #2 manufacturer and supplier of bedsheets in the U.S.
WestPoint Stevens is the nation's premier manufacturer and marketer of bed and bath
home fashions: mattress pads, feather and fiberbeds, bed pillows, sheets, towels and bath
accessories, comforters and down comforters, blankets and bedding accessories. The
current CEO of the company is M.L. Fontenot.
Some of the brands that WestPoint Steven offers are: Atelier Martex™, Baby Martex,
Chatham, Grand Patrician, Lady Pepperell, Luxor, Martex, Patrician, Stevens, Utica and
Vellux. The company also has licensed brands: Disney Home, Glynda Turley, Ralph
Lauren Home Collection and Sanderson.
Costco, Federated, J. C. Penney, Kmart, Target, and Wal-Mart account for more than half
of WestPoint Home's sales.
Some of the competitors of WestPoint Stevens are: Burlington Industries, Croscill,
Crown Crafts, Dan River, F. Schumacher, Hollander Home Fashions, Louisville Bedding,
Pacific Coast Feather and Springs Industries.
The company had total revenue of $1,642.2 million in 2003.
Sources: (WestPoint Stevens, 2005), (Datamonitor Company Profile Authority, 2005),
(Hoover's Company Records, 2005)
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Dan River, Inc.
Dan River, Inc. is the #3 manufacturer and supplier of bedsheets in U.S. The company
makes apparel fabrics, including material for men's shirts, and home fashion items, such
as comforters, draperies, pillowcases, and sheets. Home fashion items are sold through
high-volume retailers; Kmart and Wal-Mart are the firm's two biggest customers. Its
children's bedding features characters from Looney Tunes, Blue's Clues, and more. Its
woven cotton and yarn-dyed fabrics, such as oxford cloth, are used in products sold under
the Lands' End and Van Heusen brands. Chairman Joe Lanier owns about 30% of the
firm, which emerged from Chapter 11 (filed March 2004) in February 2005.
Mr. Shea (formerly CFO of the company) took over as CEO in 2004. As part of Dan
River's reorganization, it shut down factories in Georgia, South Carolina, Tennessee, and
Virginia and reduced it workforce from 5,400 (at the start of 2004) to 3,100 (at the time
of its emergence from Chapter 11).
Some of the competitors of Dan Rivers, Inc. are: Burlington Industries, Croscill, Crown
Crafts, Guilford Mills, Hollander Home Fashions, Springs Industries and WestPoint
Home.
Some of the Home Fashions brands of Dan River Inc. are: Alexander Julian AT
HOME®, Lilly Pulitzer®, Supreme Dimensions™, Marquis Home Collection™ and Dan
River® Bed in a beg décor™.
The company had total revenue of $477.4 million in 2003.
Source: (Dan River, Inc., 2005), (Hoover's Company Records, 2005)
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U.S. Retailers
Bed, Bath and Beyond, Inc.
Bed, Bath and Beyond, Inc. is the #1 home textiles specialty store in the U.S. It's the #1
superstore domestics retailer in the US (ahead of #2 Linens 'n Things), with about 660
stores in 44 states and Puerto Rico.
The retailer's decentralized structure allows store managers to have more control than
their peers at other retailers (and the company has less manager turnover). The debt-free
company cuts costs by locating its stores in strip shopping centers, freestanding buildings,
and off-price malls, rather than in pricier regional malls. To cut costs further, Bed Bath &
Beyond's vendors ship merchandise directly to the stores, eliminating the expense of a
central distribution center and reducing warehousing costs.
The current CEO of the company is Warren Eisenberg.
Some of the competitors of Bed, Bath and Beyond, Inc. are: Bombay Company,
Burlington Coat Factory, Cost Plus, Dillard's, Euromarket Designs, Federated, IKEA, J.
C. Penney, Kmart, Lillian Vernon, Linens 'n Things, May, Pier 1 Imports, Ross Stores,
Saks Inc., Sears, Target, TJX Companies, Wal-Mart and Williams-Sonoma.
From February 2004 to February 2005, the company made total revenue of $5,147.7
million.
Source: (Bed Bath & Beyond Inc., 2005), (Hoover's Company Records, 2005)
84
J. C. Penney Corporation
J. C. Penney. is the #1 home textiles department store and catalog in U.S. The retailer's
chain of more than 1,000 JCPenney department stores in the U.S. and Puerto Rico, has
found itself squeezed between upscale competitors and major discounters (Target, Wal-
Mart).
The retailer's new CEO is Myron Ullman, an experienced retail veteran and former chief
executive of Macy's.
JCPenney Home Collection is one of the private label bedsheets for the department store.
Some of the competitor of JC Penney are: American Retail, Bed Bath & Beyond, Belk,
BJ's Wholesale Club, Comerci, Costco Wholesale, Dillard's, Eddie Bauer Holdings,
Federated, Kmart, Kohl's, Lands' End, May, Nordstrom, Otto, Ross Stores, Saks Inc.,
Sears, Signet, Stage Stores, Target, TJX Companies and Wal-Mart.
The company made total revenue of $18,424 million in the fiscal year ending January
2005.
The JC Penney Corporation operates a chain of department stores and is also a catalog
and e-commerce retailer. The company operates in 49 states in the US, Puerto Rico and
Brazil. The company recorded strong catalog/internet sales, but faces increasing pressures
from rising price awareness among consumers.
Sources: (J. C. Penney Corporation, Inc., 2005), (Datamonitor Company Profile
Authority, 2005), (Hoover's Company Records, 2005)
85
Wal-Mart Stores, Inc.
Wal-Mart is the #1 home textiles mass merchandiser in U.S. Bigger than Carrefour,
Metro AG, and Royal Ahold combined, it is the world's #1 retailer, with more than 5,700
stores, including some 1,350 discount stores, nearly 2,000 combination discount and
grocery stores (Wal-Mart Supercenters in the US and ASDA in the UK), and 550
warehouse stores (SAM'S CLUB). Nearly 75% of its stores are in the US, but Wal-Mart
is expanding internationally; it is the #1 retailer in Canada and Mexico. It owns 42% of
Japanese supermarket chain SEIYU. Wal-Mart also has operations in Asia, Europe, and
South America.
Wal-Mart is famous for its low prices and breadth of merchandise. The company made
total revenue of $ 285,222 million in the fiscal year ending January 2005.
Sources: (Datamonitor Company Profile Authority, 2005), (Hoover's Company Records,
2005)
86
Appendix 6:
Bed, Bath and Beyond, Inc. in-store sheeting brands As of February 10, 2005 100% cotton sheets only Woven Sheets (no jersey knits) Source: http://www.bedbathandbeyond.com
Table 21: Bed, Bath and Beyond, Inc. in-store sheeting brands
Sizes Thread Count Type Brands Twin Full/ Double Queen King Special < 180 180 200 ~ 250 > 250 Price Range
B. Smith √ √ $69.99* Frette √ √ √ $120.00 - $210.00
Grand Patrician √ √ √ √ √ $9.99 - $90.99* Nautica √ √ √ √ √ $19.99 - $54.99*
Sealy √ √ √ √ $129.99 – $149.99*
Wamsutta √ √ √ √ √ √ √ $9.99 - $299.99* Westpoint Stevens √ √ √ √ √ $24.99 - $69.99*
Solids
Others √ √ √ √ √ √ √ $19.99 - $249.99*
Cheri Blum √ √ √ $71.99 - $83.99* Croscill √ √ √ √ √ √ $49.99 - $179.99*
Grand Patrician √ √ √ √ √ $59.99 – $119.99* Liz Claiborne √ √ √ √ √ √ $59.99 – $179.99*
Modern Classics √ √ √ $129.99 – $149.99*
Nautica √ √ √ √ √ √ √ $12.99 - $69.99 Nicole Miller √ √ √ √ √ √ $69.99 – 199.99*
Posh √ √ √ $84.00 – $109.99* Raymond Waites √ √ √ $99.99 - $119.99*
Thomasville √ √ √ √ √ $49.99 - $139.99* Wamsutta √ √ √ √ $99.99 - $134.99*
Prints
Others √ √ √ √ √ √ √ $9.99 - $149.99* Nautica √ √ √ √ √ N/A N/A N/A N/A $14.99 - $39.99* Flannel Others √ √ √ √ √ N/A N/A N/A N/A $9.99 – $79.99*
* represents that the products includes sheet sets (one flat sheet, one fitted sheet and two pillowcases), thus price range maybe higher than that of individual sheets
In solids, there are 100% cotton, blends of cotton and other natural fibers. In prints, it’s usually 100% cotton. In flannel, there are 100% cotton and other natural fibers.
87
Linens ‘n Things in-store sheeting brands As of February 14, 2005 100% cotton sheets only Woven Sheets (no jersey knits) Source: http://www.lnt.com
Table 22: Linens ‘n Things in-store sheeting brands
Sizes Thread Count
Type Brands Twin Full/ Double Queen King Special < 180 180
200 ~
250 > 250 Price Range
Divatex √ √ √ $39.99 - $49.99* Linens N Things √ √ $49.99*
Liz Claiborne √ √ √ √ $129.99 - $179.99* LNT Home √ √ √ √ $59.99 - $99.99*
Mixed Brand Codes √ √ √ $59.99 - $99.99* Scent Sation, INC √ √ $49.99*
Veratex √ √ √ $99.99* Wamsutta √ √ √ √ √ √ √ $9.99 - $139.99*
Solids
Westpoint Stevens Patrician √ √ √ $119.99 – 139.99*
LNT Home √ √ $49.99* Prints Wamsutta √ √ √ √ $6.99 - $26.99 LNT Home √ N/A N/A N/A N/A $9.99 - $19.99 Flannel Waverly √ N/A N/A N/A N/A ~$9.99
* represents that the products includes sheet sets (one flat sheet, one fitted sheet and two pillowcases), thus price range maybe higher than that of individual sheets
In solids, 100% cotton In prints, 100% cotton and poly-cottons In flannel, 100% cotton
88